The Australian Taxation Office issued new guidance under its Private Capital Program on 26 June 2026, setting out security arrangements and evidentiary requirements for fiscally transparent entities claiming treaty benefits.
The Australian Taxation Office (ATO) has issued new guidance under its Private Capital Program on 26 June 2026, outlining security arrangements and evidentiary requirements for fiscally transparent entities to support compliance by large multinational enterprises and private equity groups, including in relation to treaty benefit claims.
Private capital program
The ATO’s Private Capital Program continues to focus on ensuring large multinational and private equity groups pay the right amount of tax in Australia.
The ATO is seeing increasing complexity in private capital structures, from acquisition through to disposal. The most effective way for taxpayers to avoid disputes and ensure smooth transaction execution is to engage with the ATO early to address risks before they crystallise, particularly in high-value or cross-border transactions.
The ATO has now published web content outlining its approach to security arrangements and evidentiary expectations for fiscally transparent entities to ensure Australian tax liabilities are appropriately safeguarded.
Expectations for fiscally transparent entities
Where treaty benefits are claimed through fiscally transparent entities, the ATO expects robust, primary evidence supporting the residency of ultimate investors.
Strong documentation upfront reduces uncertainty and supports timely outcomes.
The ATO encourages taxpayers to engage with it well ahead of transactions or exits to resolve issues and provide certainty. The ATO’s aim is not to impede commercial activity, but to provide clarity, manage risks and support compliant investment into Australia.
When taxpayers come to the ATO early with quality information, the ATO can help facilitate smoother transactions and more predictable outcomes.
The ATO’s Private Capital Program web content has more information about its approach to fiscally transparent entities and security arrangements.
