The Assistant Treasurer on Thur 22.11.2012, released draft legislation, which proposes amendments to Australia’s transfer pricing rules.
According to the Government, the proposed amendments are designed to modernise the transfer pricing rules contained in Australia’s domestic law, ensuring that they better align with the international standards set out by the Organisation for Economic Co-operation and Development (OECD).
The draft legislation was announced by the Assistant Treasurer at the ICAA National Tax Conference.
COMMENTS are due by 20 December 2012.
Source: Assistant Treasurer’s media release No 144, 22 November 2012
[LTN 227, 22/11]
Protecting the corporate tax base in the digital age: Assistant Treasurer
The Assistant Treasurer on Thur 22.11.2012, addressed the ICAA National Tax Conference held in Sydney. Mr Bradbury drew attention to the emerging threat to the corporate tax base posed by certain tax planning practices utilised by multinational technology companies [Google and Apple]. Mr Bradbury said governments are increasingly discovering the lack of effectiveness in the digital age of international tax concepts created for the industrial age. He said such weaknesses in the international tax architecture are spreading to other industries and activities.
Mr Bradbury said the Government’s response is to protect the corporate tax base and to reform 2 areas of the tax law ie the general anti-avoidance rules and the transfer pricing rules (see above).
The Assistant Treasurer also announced that he has asked Treasury to develop a scoping paper, to be led by the head of the Revenue Group, Mr Rob Heferen. The paper will set out the risks to the sustainability of Australia’s corporate tax base and look at the potential solutions.
[LTN 227, 22/11]