Recent Developments

A summary of selected tax developments for the week ending 17 May 2013

The problem of a sizeable deficit, driven largely by a significant shortfall in predicted revenue, has led the government to announce a number of significant changes to Australia’s tax law. While some of the announced measures were expected, many were not. And unlike some Budgets in past years, this one was accompanied by a number of compendious background papers from the Board of Taxation and Treasury on consolidation, base erosion, and mining taxation.

Treasury has released an Issues Paper entitled “Implications of the Modern Economy for the Taxation of Multinational Enterprises.” The paper reflects Australia’s developing contribution to the G-20 and OECD projects on Base Erosion and Profit Shifting (BEPS). It will lead to a further Treasury Scoping Paper in June 2013. This tax brief outlines the possible impacts of the Issues Paper.

A summary of selected tax developments for the week ending  10 May 2013

The ATO seems to have assumed for many years that it was not prevented by tax treaties from taxing substantial interests in Australian mining companies. The recent decision of Edmonds J of the Federal Court of Australia in Resources Capital Fund III throws the ATO views into considerable doubt, as well as dealing with the vexed issue of treaty benefits in cases involving foreign limited partnerships and clarifying the principles for interpretation of tax treaties.

A summary of selected tax developments for the week ending 26 April 2013

What's new in tax and M&A

A summary of selected tax developments for the week ending 26 April 2013

In the 2011 Budget the Government announced the introduction of special treatment of tax losses of infrastructure projects subject to strict conditions, as part of a larger infrastructure package. After a discussion paper towards the end of 2011, draft legislation has now been released along with a draft explanatory memorandum and rules that will be implemented as a legislative instrument. This tax brief discusses the drafts.

Treasury has released an Exposure Draft of the legislation needed to enact ‘Element 3’ of the Investment Manager Regime.  The major beneficiaries of this measure will be foreign fund managers who trade in Australian debt and equity securities for their investors.  This Tax Brief examines the main provisions of the Exposure Draft, its principal effects and some of the issues that it will raise.