As part of the 2022‑23 Budget, an anti‑avoidance measure to prevent large multinationals from claiming tax deductions for payments relating to intangibles connected with low corporate tax jurisdictions was announced. The measure forms part of the government’s commitment to ensure that multinational enterprises pay their fair share of tax in Australia to help fund vital services, repair the Budget and level the playing field for Australian businesses.
On Friday 31st March 2023, Treasury released a new Exposure Draft legislation and Explanatory Memorandum which will introduce an anti-avoidance rule, designed to deny deductions in relation to payments in respect of intangible assets to an associate.
The government has prepared exposure draft legislation to give effect to the measure and the consultation period ends on 28th April 2023.
The changes will operate on or after 1 July 2023.
Further details will be provided in due course. In the meantime, if you have questions about this Exposure Draft or any of the explanatory material, please contact Peter Murray.
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please also note that the law may have changed since the date of this article.