On 5 August 2022, Treasury released a consultation paper on Multinational Tax Integrity and Tax Transparency. The consultation paper addresses what the Federal Government perceives as tax avoidance practices of multinational enterprises (MNEs), along with improving transparency through better tax information reporting for MNEs.
The consultation paper includes three main proposals:
- Changing Australia’s existing thin capitalisation rules
- Limiting large MNE deductions for certain royalty payments
- Enhancing MNEs disclosure of tax information.
In response to Treasury’s request for comments on the consultation paper, the BDO National Tax team has prepared a submission.
We provide a summary of the three main proposals within the consultation paper, along with a discussion about their design and potential implications here: Treasury consultation paper details multinational enterprise crackdown
If you have any questions about this submission, or would like more information on Corporate & International Tax, please contact your local BDO adviser.