Australia–MNE Tax

Australia

Australian Tax Considerations: Reforms to LIBOR and other inter-bank offer rates

May 17, 2022

By David Early, Partner | Nuwaru | Corporate and International Tax The Reforms For many years inter-bank offered rates, or IBORS, and in particular, the London inter-bank offered rates, or LIBOR, have been a widely used benchmark for global interest rates, underpinning derivatives,

Asia-Pacific

Singapore Telecommunications (Singtel) has filed an appeal after Australian court ruled its subsidiary must pay an AUD 393 million tax bill that leads back to the company’s acquisition of Optus in 2001: The Edge Markets→

April 21, 2022

Americas

Interest on inbound financing: is it arm’s length?

April 12, 2022

Annemarie Wilmore, Johnson Winter & Slattery, discusses the latest developments in the Australian case of Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation when the Australian Federal Court issued a further decision on March 22, including its consideration of whether consequential adjustments to the transfer pricing benefit should be made to take into account carryforward losses.

Asia-Pacific

Australian Federal Court provisionally rules that some tax documents are privileged, others are not

April 4, 2022

Paul McNab, DLA Piper Sydney, discusses the March 22 Federal Court of Australia judgment in a long-running dispute against Pricewaterhouse Coopers determining that some tax documents are privileged, others are not.

Asia-Pacific

Australian transfer pricing: what multinational groups need to know

March 31, 2022

Geoff Morris, InTP, provides an overview of Australia’s transfer pricing laws and the tax administration’s practices in this area, focusing on the provisions, as well as on how Australia monitors transfer pricing risks.

Americas

What every taxpayer should learn from Coca-Cola: Song / CrossBorder Solutions→

March 3, 2022

Asia-Pacific

Australian patent box R&D tax rules bill introduced in parliament

March 1, 2022

Sam Lo Ricco, Nuwaru, discusses the long-awaited patent box rules bill introduced in Australia’s parliament on February 10, covering medical or biotechnology patents that could allow taxpayers to benefit from a concessional tax rate of 17%.

Asia-Pacific

Greece, Australia start tax treaty negotiations: Papadopoulos / Greek City Times→

February 25, 2022

Asia-Pacific

Australian Taxation Office plans review of advance pricing arrangement program

January 13, 2022

The Australian Taxation Office announced on January 12 that in 2022 it is conducting a review of its advance pricing arrangement (APA) program, focusing on whether the program is assuring transfer pricing risk in the most efficient manner, as well as . . .

Asia-Pacific

Australian Taxation Office clarifies eligible expenses for R&D tax incentive

December 28, 2021

The Australian Taxation Office on December 23 updated guidance on expenses that may be claimed in connection with research and development (R&D) tax incentives through a ruling on the “at risk” rule and a determination on deductions subsidized by . . .

Americas

ATO prevails in Singapore Telecom Australia intercompany financing litigation

December 20, 2021

New York City Economist Dr. J. Harold McClure analyzes Australia’s Federal Court of Appeals ruling on December 17 in favor of the Australian Tax Office in Singapore Telecom Australia Investments Pty Ltd v. Commissioner of Taxation – a transfer pricing case involving intercompany interest payments in . . .

Asia-Pacific

Australian Taxation Office addresses imported hybrid mismatch rule

December 17, 2021

The Australian Taxation Office describes how it assesses tax compliance risk in connection with imported hybrid mismatch rules in a practical compliance guideline issued December 16; the imported hybrid mismatch rules disallow . . .

Asia-Pacific

Australian corporate tax compliance improves under agency efforts, ATO claims

December 10, 2021

The Australian Taxation Office states that its latest annual corporate tax transparency report, published December 10, demonstrates that voluntary tax compliance by large corporations is improving; the percentage of large corporations with a “high assurance” rating has increased from just . . .

Asia-Pacific

Taiwan signs tax treaty with South Korea, seeks trade agreements with India and Australia: Lin Chia-nan / Taipei Times→

December 2, 2021

Americas

Tax dispute resolution via mutual agreement procedure works, mostly, but is still slow

November 23, 2021

Around 75% of mutual agreement procedure (MAP) cases concluded worldwide in 2020 – both for transfer pricing and other tax cases – resulted in full resolution of the issue, according to the OECD’s 2020 MAP statistics released November 22, with only . . .

Asia-Pacific

Australia updates guideline on simplified transfer pricing record-keeping options

November 12, 2021

The Australian Taxation Office on November 11 amended its practical compliance guideline on simplified transfer pricing record-keeping options to provide maximum and minimum . . .

Asia-Pacific

Australian Taxation Office’s transfer pricing audit of ResMed: an illustrative model

November 12, 2021

New York City Economist Dr. J. Harold McClure discusses medical equipment company ResMed’s settlement with the Australian Tax Office (ATO) for USD 381.7 million in additional taxes in connection with an ATO audit over certain transfer pricing issues between . . .

Africa

EU removes three jurisdictions from tax ‘black list’

October 5, 2021

The European Council on October 5 approved the removal of Anguilla, Dominica, and Seychelles from the EU’s list of non-cooperative jurisdictions for tax purposes, the so-called “black list,” and moving . . .

Asia-Pacific

Australian Taxation Office reacts to loss in Glencore transfer pricing case

September 28, 2021

The Australian Taxation Office, in a September 28 decision impact statement, sets out its views on the outcome of the Glencore transfer pricing dispute, in which the Federal Court of Australia held that the ATO had misapplied . . .

Asia-Pacific

Australia plans to add 10 new tax treaties in next two years

September 17, 2021

Australia plans to expand its existing network of 45 bilateral tax treaties by entering into 10 new and updated tax treaties by 2023, according to a September 15 announcement from . . .

Americas

Asia to see disparate impacts from global digital tax reforms, IMF reports

September 15, 2021

Global tax reform efforts to address digitalization of the economy would likely have modest revenue effects in Asia, on the whole, according to a September 14 report from the International Monetary Fund; however, the effects would be uneven . . .

Asia-Pacific

Australian Taxation Office challenges in court availability of legal professional privilege for tax advice offered by Big 4 accounting firms: Paul McNab / Linkedin→

September 8, 2021

Americas

ICAP multilateral tax risk assurance program applications due September 30

September 2, 2021

Multinational entities interested in participating in the first full round of the OECD Forum on Tax Administration (FTA) International Compliance Assurance Programme (ICAP) have until September 30 to submit the . . .

Australia

Dutch intercompany financing rulings and the transfer pricing of intercompany loans

September 2, 2021

New York City Economist Dr. J. Harold McClure analyzes a July 16 Dutch Supreme Court decision on intercompany financing and discusses how the terms of the intercompany loan show that the tax authority also could have challenged the intercompany interest rate as . . .

Asia-Pacific

Australian bill introduced to require tax reporting by digital platforms

August 26, 2021

Legislation introduced in Australia’s House of Representatives on August 25 would require digital platform operators to report to the Australian Taxation Office certain information on . . .

Americas

Extending Australian tax office’s example of transfer pricing implications from demise of LIBOR

August 20, 2021

New York City Economist Dr. Harold McClure analyzes an example from the Australian Tax Office’s August 12 discussion paper on how to address the transfer pricing implications from the demise of London interbank rates, scheduled to . . .

Asia-Pacific

Australia consults on tax and transfer pricing effects of inter-bank offered rate reforms

August 18, 2021

The Australian Taxation Office describes, in an August 12 discussion paper, common tax consequences and transfer pricing considerations resulting from changes made to financial arrangements in response to reforms to inter-bank offered rates (IBORs), seeking input on . . .

Accounting

IASB proposes amendment for insurers, European accounting group responds

August 9, 2021

The International Accounting Standards Board (IASB) on July 28 proposed a limited change to the transition requirements in International Financial Reporting Standards (IFRS) 17, Insurance Contracts, intending to address . . .

Africa

US FDII deduction among international ‘harmful tax practices’ slated to be abolished

August 5, 2021

An update on reviews of preferential tax regimes published by the OECD on August 5 states that the US foreign-derived intangible income (FDII) regime is “in the process of being eliminated.” The new report includes updated conclusions with respect to 18 designated . . .

Asia-Pacific

India’s first year of ‘faceless’ tax assessments runs into legal issues

August 3, 2021

Suranjali Tandon from the National Institute of Public Finance and Policy, New Delhi, analyzes several court decisions issued in June and July that highlight implementation issues with India’s new “faceless” – i.e., digital – tax assessment scheme, which was intended . . .

Africa

Ireland, Lithuania, Hungary offer lowest tax rates for R&D, OECD study finds

August 2, 2021

An OECD taxation working paper on corporate effective tax rates for research and development (R&D) released on July 29 reports that the effective average tax rate on R&D investments in Ireland, Lithuania, and Hungary range from -2% to -4% – suggesting . . .

Asia-Pacific

Australia consults on patent box R&D tax incentive

July 13, 2021

The Australian government on July 5 launched a consultation on the design of its planned patent box regime announced in the . . .

Asia-Pacific

Australian draft tax ruling clarifies when software gives rise to royalties

July 8, 2021

Draft guidance issued by the Australian Taxation Office on June 25 describes the circumstances under which receipts from the licensing and distribution of software will . . .

Accounting

Australian Accounting Standards Board clarifies deferred tax recognition rules

July 8, 2021

The Australian Accounting Standards Board (AASB) on July 2 amended its guidance on accounting for deferred tax with respect to transactions that give rise to . . .

Asia-Pacific

Australian R&D tax incentive draft ruling clarifies ‘at risk’ rule

June 29, 2021

A draft tax ruling issued by the Australian Taxation Office on June 25 explains the circumstances in which a company’s research and development (R&D) tax offset could be . . .

Africa

Irish tax treaty commentators disagree on approach to new negotiations

June 23, 2021

Comments from business groups and non-governmental organizations, published June 21, in response to Ireland’s public consultation on its tax treaty policy identified several jurisdictions where . . .

Africa

G20 draft communique reportedly endorses global minimum tax

June 22, 2021

A draft communique for the upcoming G20 finance ministers meeting on July 9–10 includes language expressing the countries’ support for a global minimum tax and new rules . . .

Asia-Pacific

Australia budget includes tax changes affecting foreign investors

June 7, 2021

Paul McNab, Partner, DLA Piper, discusses Australia’s federal budget, delivered on May 11, which includes a number of tax measures relevant to foreign investors . . .

Asia-Pacific

Australia updates and extends through year-end its guidance on whether a PE is created from the presence of employees in Australia due to COVID-19: Australian Taxation Office→

June 2, 2021

Khaled Al Zaabi on Spanish government proposes digital services tax: “We are seeking assistance with Digital Assets and International Tax Consulting to help Abu Dhabi UAE Oil Company navigate the…” October 24 ,2024

Emma Hinson Sims on The Pillar One blueprint — the potential future of international taxation and transfer pricing: “HAPPY BIRTHDAY TO A VERY SMART, BEAUTIFUL, YOUNG LADY ON JANUARY 13TH.” January 6 ,2024

David Valdez on US Tax Court resolves Whirlpool tax dispute involving Mexican maquiladora structure: “Greetings Whirlpool Mexico, I’m trying to contact someone involved with the decision making for transportation from all of your Mexican…” October 20 ,2023

Jose Dominguez on The new US international tax rules: what you need to know about GILTI, FDII, BEAT etc.: “Very informative article. Question. Do you have a software to compute these US International Calcs to make them in house?” April 12 ,2023

Ciro César Soriano de Oliveira on Danish High Court rules on beneficial ownership of dividends for tax purposes: “Dear Ms Susi, This article is immensely clarifying. I’d like to know whether Danish Supreme Court has already granted its…” March 24 ,2023

May 19 – 20	Tax Council Policy Institute Conference	Washington, D.C.
May 19 – 20	IFA Second European Region Conference	Milan, Italy
May 24	IFA Webinar Series Pillar Two: An Update	Virtual Event
Sept. 4 – 8	IFA Congress	Berlin