Lower House Committee recommends Bill be passed
The Advisory report of the House of Reps Standing Committee on Economics on the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 was tabled in the House of Reps on Tue 12.3.2013. The Committee recommended the House pass the Bill, although Coalition members of the Committee disagreed and issued a dissenting report.
The Bill contains amendments to Pt IVA and amendments to the transfer pricing provisions in the tax law. The Committee said the Pt IVA amendments were an “appropriate, reasoned and measured response” to the identified weaknesses in the legislation. Re the annihilation or reconstruction provisions, the Committee said it did not accept there was any lack of clarity in how these provisions would operate, or that they would require businesses to pay more tax than is fair or negatively affect commercial activities.
The Committee found that the application and effect of the proposed reconstruction rules in the transfer pricing amendments were “clearly based on the language used in the OECD guidelines and will be interpreted consistently with these guidelines”.
[LTN 49, 13/3/13]
Pt IVA and transfer pricing Bill referred to Senate committee
The following Bill have been referred to a Senate committee for consideration:
- the has been referred to the Senate Economics Legislation Committee for inquiry and report by 14 May 2013Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013
[LTN 50, 14/3/13]