Public Consultation on the Multinational Anti‑avoidance Law

The Australian government also announced a public consultation on its Multinational Anti-avoidance law on May 12, 2015:

“In the 2015-16 Budget, the Government announced that it would introduce the tax integrity multinational anti‑avoidance law to stop multinational entities using artificial or contrived arrangements to avoid a taxable presence in Australia.

This exposure draft Bill and associated explanatory material would amend the anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936, giving effect to that decision.

The measure is intended to target situations in which:

  • a foreign multinational supplies goods or services to Australian customers and books that revenue offshore;
  • the activities of an Australian entity are integral to the Australian’s customer’s decision to purchase the goods or services;
  • the profits from Australian sales are subject to low or no global tax; and
  • one of the principal purposes of the arrangements is to obtain a tax benefit.

Where the measure applies, the Commissioner of Taxation may cancel the Australian tax benefits obtained in connection with the scheme.

This measure will only apply where the non-resident’s annual global revenue is greater than $1 billion.”

See the complete release here.

The Exposure Draft is available here.

The Explanation Material is available here.

Closing date for submissions is set to Tuesday, 9 June 2015.

Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at”

DRTP Consulting Inc. solutions go beyond transfer pricing and international tax solutions. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. DRTP Consulting Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from DRTP Consulting Inc. as required.

Posted by drtp On 13 May 2015