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Tax Integrity: Multinational Anti‑avoidance Law

12 May 2015 | Exposure Draft

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.

This consultation process has now been completed

Key Documents

Submissions

20 submissions were received for this consultation, including 2 confidential submissions.

Ref Num: {3B343E40-FF49-4261-9FA6-50F702B5E148}
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