26 Nov 2019 | Riposte | Financial Services | Corporate and Mergers & Acquisitions | Private Wealth | Private Equity | Energy & Resources

Close and remote resemblances in the anti-hybrids rules

A recent Draft Taxation Determination is the first ATO guidance on one of the key elements in the anti-hybrids rules; it has implications for how several parts of the rules will operate in practice.

12 Nov 2019 | Tax Brief | Corporate and Mergers & Acquisitions | International | Financial Services | Private Wealth | Private Equity

BEPS 2.0 - Pillar Two moves forward

The OECD has released its consultation document for BEPS Pillar Two on GloBE (the global anti-base erosion tax) as promised when releasing the Unified Secretariat Proposal on Pillar One last month.

23 Oct 2019 | Riposte | Corporate and Mergers & Acquisitions | Private Wealth

High Court Rules on the Treatment of Statutory Licences

The High Court has handed down its judgment in the Sharpcan litigation, a case that raises a well-trodden capital-or-revenue issue, but also touches on the untested ‘black-hole’ rules. The case highlights again the glaring omission of a regime for depreciating wasting intangible assets, and the difficult problems taxpayers can face trying to remedy that defect in our law.

11 Oct 2019 | Tax Brief | Corporate and Mergers & Acquisitions | International | Real Estate | Financial Services

A Digital Revolution at the OECD?

The OECD’s Public Consultation Document released in Paris on 9 October proposes changes to the international tax regime which would radically re-shape fundamental building blocks such as the permanent establishment threshold, the arm’s length pricing principle, and even the separate entity principle for taxing members of corporate groups. The approach in the Consultation Document would be a momentous change to positions the OECD has defended for decades, and to the international tax landscape more generally.

19 Jul 2019 | Riposte | Financial Services | Corporate and Mergers & Acquisitions | International

2019 International Dealings Schedule changes for Financial Services

We highlight some important changes in the 2019 International Dealings Schedule (IDS) which are relevant for financial services entities.

03 Jul 2019 | Riposte | Corporate and Mergers & Acquisitions | Financial Services | International

Corporate Tax Changes from 1 July 2019

To kick off the new financial year, we set out some important tax changes which take effect for many corporate taxpayers from 1 July 2019.

12 Apr 2019 | Riposte | Financial Services

Another limit on deducting interest

The ATO has released a draft ruling on the hybrid mismatch ‘integrity rule’, which makes clear how broad the potential scope of the rule is, even before the Budget announcement that it will be amended to broaden its scope even further. It is yet another provision that taxpayers need to be mindful of when claiming deductions on related party debt and derivatives.

05 Apr 2019 | Riposte | Financial Services

“Tier 3” securities in Australia – further tax regulations?

Australia’s largest banks will soon be required to issue further regulatory capital. Discussions are currently ongoing with APRA in relation to the precise form of this capital. If Australia adopts the approach seen in a number of European countries then it is possible that a further class of securities (commonly referred to as “Tier 3” capital) will be introduced in Australia. Although such Tier 3 securities should be classified as debt for Australian tax purposes, it is likely that further Regulations will be required in order to ensure this treatment.

02 Apr 2019 | Riposte | Financial Services

Receivers’ obligations to retain money for tax

The ATO has released a draft tax determination, TD 2019/D2, dealing with one aspect of the obligations of a receiver in handling money where a future tax liability may be assessed.

19 Mar 2019 | External Publications | Financial Services

Banking Tax Update 2019

Consultant Richard Vann presented on FCT v BHP Billiton Limited [2019] FCAFC 4 and Directors Andrew Hirst and Julian Pinson presented on the hybrid mismatch rules, with a focus on examples affecting banks.

(166 kb)

12 Oct 2018 | External Publications | Financial Services

Anti-Hybrids: The Current State of Play

Anti-Hybrids: The Current State of Play is a paper written and presented by Andrew Hirst and Ryan Leslie for The Tax Institute’s Vic 6th Annual Tax Forum. The paper provides an overview of the rules which will take effect from 2019 and provides practical examples of how the rules will affect a range of instruments and structures.

(3538 kb)

24 May 2018 | Riposte | Financial Services

Anti-hybrid measures Bill

The Bill to enact the Government’s announced anti-hybrid measures was introduced into Parliament today. As expected, the Bill makes changes to franking and exempt dividends and payments to low-tax jurisdictions, as well as a suite of measures, based on the OECD/G20 Final Report on BEPS action 2, dealing with hybrid financial instruments and hybrid entities.

28 Nov 2017 | Riposte | International

Hybrid Mismatch Rules (Part 2)

The Government has released draft legislation to implement the OECD Hybrid Mismatch Rules. In this Riposte, we examine how the proposed suite of dedicated rules will change the tax treatment of hybrid financial instruments and transactions involving hybrid entities.

27 Nov 2017 | Riposte | International

Hybrid Mismatch Rules (Part 1) – Dividends and Franking

The Government has released draft legislation to implement the OECD Hybrid Mismatch Rules. In this Riposte, we examine how the proposed rules will impact dividends, principally the receipt of non-portfolio dividends from overseas. Our second Riposte will focus on the suite of further specific anti-hybrid rules.

15 Mar 2017 | Riposte

New ATO draft ruling on company tax residence

The ATO’s new draft ruling on company residence following Bywater and Hua Wang will create more uncertainty for taxpayers, and emphasises the importance of proper governance by company directors.

08 Feb 2017 | External Publications | Financial Services

BEPS and hybrid mismatch arrangements

Andrew Hirst authored "BEPS and hybrid mismatch arrangements" which he presented at The Tax Institute Financial Services conference in February 2017.

(810 kb)

20 Oct 2016 | Tax Brief

Debt-equity amendments

A draft of the rules to repeal the much-maligned s.974-80 is finally available, but the replacement is a disappointing melange of indecisive text. It could well cause as much heartache as the provision being replaced. We examine the good, the bad and the decidedly curious in the draft legislation.

Debt-equity Amendments (235 kb)

11 Oct 2016 | Riposte | Real Estate | Financial Services | Projects & Infrastructure

Related schemes & 974-80 ED at last

Exposure draft legislation intended to address the Board of Taxation’s recommendations concerning s.974-80 and the related schemes provisions in the debt/equity rules has finally been released. Do the proposals provide clarity to taxpayers who are not on all fours with the examples?

24 Aug 2016 | Riposte | Financial Services

The expanding domain of hybrid mismatch arrangements

The ATO is currently focussing on offshore branches, the “law” and “lore” in relation to which are extremely complicated. The complexity is likely to increase as a result of the OECD’s new proposal to apply BEPS hybrid mismatch-type principles to offshore branch structures.

16 Aug 2016 | Riposte | Financial Services

Offshore permanent establishments – a current area of ATO focus

Last week, the ATO issued three further Taxpayer Alerts effectively operating as a warning in relation to certain types of taxpayer behaviour which they regard as egregious. One of the Taxpayer Alerts, TA 2016/7 applies to “Arrangements involving permanent establishments”.

27 Apr 2016 | Riposte

ATO on alert for multinational tax avoidance

The ATO released four Taxpayer Alerts on 26 April 2016 targeted at tax avoidance by multinational companies, suggesting that it has many weapons available for challenging existing and emerging structures.

17 Mar 2016 | Riposte | Financial Services

Changes to ruling on FITO caps

The ATO has issued an Addendum to its 2014 Ruling on the impact on FITOs of losses on FX derivatives. The Addendum should be welcome news for some participants in the banking industry.

17 Feb 2016 | External Publications | Financial Services

Source: Where are we now?

Andrew Hirst, Euan Campbell (Assistant Commissioner, ATO) and Adrian Mak (ATO), co-authored and presented "Source: Where are we now?" at The Tax Institute's Financial Services conference in February 2016.

(393 kb)

23 Oct 2015 | Riposte

Chevron: transfer pricing win for ATO

The Federal Court has found in favour of the Commissioner in one of the most closely-watched tax cases in recent years.

24 Sep 2015 | Riposte | Financial Services

Swaps: why so difficult?

Draft taxation ruling TR 2015/D3 continues the long, sad attempt to deal with the tax implications of what are now very common derivative financial instruments: swaps.

24 Jun 2015 | Riposte | Financial Services

Sanity prevails on TR 2014/7

The ATO has issued an amended version of TR 2014/7 dealing with gains and losses from FX derivatives. Though issues remain in the revised version, the withdrawal of certain aspects of the initial ruling concerning source are welcome.

09 Apr 2015 | Tax Brief

IMR - Fourth Time Lucky?

Treasury has released the fourth draft of the Investment Manager Regime Element 3. The draft is a considerable advance over the previous versions, but incorporates a significant change in structure and drafting. This Tax Brief highlights the changes from previous drafts of the legislation.

(116 kb)

13 Mar 2015 | Riposte | Financial Services

OBU rules: Exposure Draft

Exposure Draft changes to the OBU rules have been released. Some historic problems have been addressed, but is this another lost opportunity to properly reform a struggling regime?

21 Nov 2014 | External Publications

The difficult debt-equity rules: Clarifying s 974-80

This article was originally published in Thomson Reuters Weekly Tax Bulletin 49 on 21 November 2014.

12 Nov 2014 | Riposte

974-80 - half a step forward?

The ATO has just released 2 draft TDs on s.974-80. Although they represent a step in the right direction for taxpayers, issues still remain.

13 May 2014 | Tax Brief

Australia's Budget for 2014-15

The Treasurer has announced a shopping list of modest business tax changes in this year’s Budget. This Tax Brief outlines the main tax measures and what they will mean for Australian business.

Australia's Budget for 2014-15 (135 kb)

02 May 2012 | Tax Brief

Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Consolidation Exposure Draft provisions (62 kb)