Diverted Profits Tax
A new Diverted Profits Tax (DPT) is to be introduced imposing a 40% tax charge on large multinational entities that artificially divert profits from Australia. The tax is proposed to be effective from 1 July 2017. Read more.
The Government has announced that rules will be introduced to eliminate instances of hybrid mismatch as part of the implementation of the Organisation for Economic Co-operation and Development’s (OECD) Action Plan on Base Erosion and Profit Shifting (BEPS) – Action 2 and with further details in a Board of Tax report released on the same day as the Budget. Read more.
Transfer pricing amendments
Over the last few years, there have been significant OECD developments as a result of its global Base Erosion Profit Shifting (‘BEPS’) initiative, including revisions to certain chapters of the OECD Transfer Pricing Guidelines. The report Aligning Transfer Pricing Outcomes (released on 5 October 2015) contains such revisions to chapters of the 2010 OECD Transfer Pricing Guidelines. Read more.
Increased Administration Penalties for Significant Global Entities
As a part of the Government’s proposed measures to tackle multinational tax avoidance, the Government proposes to considerably increase the administrative penalties for companies deemed significant global entities. Read more.