MWYS and CofT – Profits within a ‘dual listed’ structure, were only CFC attributable, on purchases from the Australian side of the structure because the dual-listed companies were not CFC ‘associates’

The AAT has decided that only part (not all) of the profits, of a Swiss company, should have been attributed to the Taxpayer, under the CFC provisions (as “tainted sales income”), despite Swiss Co being 100% (indirectly) owned by the Taxpayer and a UK company, under a dual-listed company (DLC) arrangement. The AAT attempted to keep the parties to this case anonymous, but it was clear that this involved BHP and DLC company was Billiton. This was confirmed in the Full Federal Court Appeal [see related Tax Technical article]. The High Court has now given BHP leave to appeal the Full Federal Court majority decision (see related Tax Technical article).

See below for the detail.

FJM 6.3.18

[Tax Month March 2018]