• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 12/3/2013

Australia - Tax base erosion, BEPS follow-up, contracted R&D 

December 3:  The KPMG member firm in Australia prepared reports on the following developments (read the 2013 reports by clicking on the hyperlinks provided below):
  • Closing loopholes in the consolidation regime - To protect the corporate tax base from erosion and loopholes, changes to the Australian income tax consolidation regime are to proceed as announced from 14 May 2013 with a net financial impact to the forward estimates of $540 million in additional government revenue. Announced as part of the May 2013 federal budget, the changes will implement the recommendations contained in the Board of Taxation reports.

    Read a December 2013 report

  • OECD BEPS action plan; changes to international tax rules - The OECD base erosion and profit shifting (BEPS) action plan reflects what would be important changes to international tax rules. There are twin drivers of change: (1) that governments and the OECD will be working together on tax systems, and how profits and value are created in individual countries; and (2) that businesses are becoming increasingly international, with more complex regional and sometimes global supply chains.

    Read a December 2013 report

  • R&D expenditure under ATO scrutiny - In a case concerning a refund for contracted research and development (R&D) expenditure, the Administrative Appeals Tribunal of Australia disallowed the R&D claim and also imposed a 25% penalty for failure by the taxpayer to take reasonable care.

    The case is: Vision Intelligence Pty. Ltd. v. Commissioner of Taxation [2013] AATA 527. Read a November 2013 report

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