Australia: ATO finalized guidance on the arm’s length debt test
On 12 August 2020, the Australian Taxation Office (ATO) released its finalized practical guidance dealing with the application of the arm’s length debt test (ALDT) which applies as one of the options for determining deductibility of interest and
See MoreAustralia updates transfer pricing legislation in accordance with OECD guidelines
Australia's transfer pricing legislation has been updated to specify that it is to be interpreted to achieve consistency with the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines for Multinational
See MoreAustralia: Integrity rule law companion ruling finalized
In April 2019, Australian Taxation Office (ATO) released a draft Law Companion Ruling on the Organization for Economic Cooperation and Development (OECD) hybrid mismatch rules related to integrity rule. The ATO have now released draft LCR
See MoreAustralia reduces tax rates for small businesses
Mr. Josh Frydenberg, the Australian Treasurer has issued a joint release on the reduction of the corporate income tax rate for businesses with turnover of less than AUD 50 million. From July 1 2020, small and family businesses will be paying less
See MoreAustralia updates instructions for local file 2020
The Australian Taxation Office (ATO) updated the instructions for local file. These instructions apply to the local file for 2020. This relates to reporting periods starting on or after 1 January 2019. According to the instructions, local file
See MoreAustralia: Guidance on the Impact of the COVID-19 Crisis on Transfer Pricing Arrangements
On 19 June 2020 the Australian Taxation Office (ATO) posted to its website guidance entitled COVID-19 economic impacts on transfer pricing arrangements. This sets out guidance for taxpayers affected by COVID-19 who are preparing transfer pricing
See MoreAustralia extends provision for instant asset write-off
On 9 June 2020, Australia’s federal government further announced plans to facilitate small business in response to the Covid-19 surge. That government will extend the AUD 150,000 instant asset write-off for six months to 31 December
See MoreAustralia updates guidelines for resolving international tax disputes
The Australian Taxation Office (ATO) has updated the guidelines for the mutual agreement procedure (MAP) and arbitration arrangements. The updated guidelines reflect modifications made (or to be made) in some of Australia’s tax treaties made
See MoreAustralia: ATO concerns over mischaracterized financial arrangements
On 25 May 2020, the Australian Taxation Office (ATO) issued Taxpayer Alert (TA) 2020/2, in relation to mischaracterised arrangements and schemes connected with direct foreign investment into Australian businesses. ATO is concerned that
See MoreAustralia: New proposals on Hybrid mismatch rule
On 13 May 2020, the Treasury Laws Amendment Bill 2020 was presented in the House of Representatives that would make technical changes to the hybrid mismatch rules addressing integrity of income tax laws and their application to multinational
See MoreAustralia extends lodgment due date amid COVID-19 pandemic
In response to COVID-19, the Australian taxation office (ATO) extended the lodgment day for 2018–19 company tax returns for many companies: Returns that were due on 15 May 2020 under the tax agent lodgment program have been automatically
See MoreAustralia: Tax measures amid COVID-19 pandemic
On 12 March 2020, the Australian government announced a package of measures to assist the economy withstand and recover from the economic impact of COVID-19. The following measures will be administered by the Australian Taxation Office
See MoreAustralia: Supporting measures to assist those affected by COVID-19
The Australian Taxation Office (ATO) announced that it will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak. ATO release options available to
See MoreIMF Report Discusses Australia’s Economic Situation
On 4 March 2020 the IMF published a report following the conclusion of discussions with Australia under Article IV of the IMF’s articles of agreement. Economic growth recovered gradually in 2019 with a contribution from net exports. Growth is
See MoreAustralia introduces a bill to expand definition of SGE
On 12 February 2020, the Treasury Laws Amendment (2020 Measures No. 1) Bill 2020 was submitted in the Australian House of Representatives. This bill contains two measures that maintain the integrity and efficiency of Australia's tax
See MoreAustralia: ATO issues urgent notification for CbCR lodgments
The Australian Taxation Office (ATO) has issued an email notification regarding an essential update on Country-by-Country reporting (CbCR) lodgments. An increased number of data validations will now be performed on lodgments before they are
See MoreAustralia extends TP document submission deadline
Significant global entities (SGEs) that have a CbC reporting obligation in Australia for the year ended 31 December 2018 required that their local file (LF), master file (MF), and CbC report are due to be lodged by 31 December
See MoreAustralia updates guideline for simplified transfer pricing record keeping options
On 11 September 2019, the Australian Taxation Office (ATO) released an updated version of Practical Compliance Guideline (PCG) 2017/2 concerning the eligibility criteria for applying simplified transfer pricing record keeping options for
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