TA 2016/11 –defeat the MAAL (s177DA) by inserting a partnership with an Australian minority partner (an ‘Australian entity’) as the distributor with the old foreign supplier as its agent (no change in operations)

Tax Month - September 2016

On 15.9.16 the ATO issued a further Tax Alert: TA 2016/11 about arrangements is concerned will be ineffective to defeat the Multinational Anti-Avoidance Law (MAAL) in s177DA of the Income Tax Assessment Act 1936 (ITAA36). This is the third TA on MAAL avoidance this year, after TA 2016/2 about foreign and Australian entities swapping roles…

TA 2016/10 – Cross Border ‘Round Robin’ Financing Arrangements – funding an overseas entity which (indirectly) returns the funds with ‘debt deductions’

Tax Month - September 2016

We are reviewing cross-border round robin type arrangements that involve funding of an overseas entity or operations by an Australian entity, where the funds are subsequently provided back to the Australian entity or its Australian associate in a manner, which purportedly generates Australian tax deductions while not generating corresponding Australian assessable income. One example of…