Australia releases more guidance on diverted profits tax

The Australian Taxation Office (ATO) today released more draft guidance on its new diverted profits tax on large multinationals.

Draft Practical Compliance Guidance 2018/D2 sets out the ATO’s client engagement framework for the diverted profits tax. It also outlines the ATO’s approach to risk assessment and compliance activity when the tax is identified as a potential area of concern.

The ATO last December published a draft law companion guide and law administration practice statement on the new tax. The Australian tax has been in effect since July 1, 2017.