Insights

ATO boldly sharpens its tools: multinational intangible arrangements in its sights

Multinational groups who use intangible assets as part of their operations should be aware of two new guidance documents published by the ATO.

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Royalty-free contracts will attract scrutiny by the ATO

The Federal Court has held in Pepsi Inc v Commissioner of Taxation [2023] FCA 1490 that international arrangements involving the licence of trademarks and other intellectual property (IP) should be...

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Taking stock of Vanderstock

Strong positions taken and uncertainty remains: High Court divergence of views on excise case could have major consequences for State and Territory taxing powers.

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ATO’s approach to settlements with Australia’s largest taxpayers

The ATO has published its findings report on public and multinational business settlements 2022-2023. In this article, we unpack the ATO’s findings, and outline the considerations that the ATO will...

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Multinational tax integrity package – MNEs watch this space

The past few weeks have been exceptionally busy from an international tax perspective, with the Government making headway on a number of its tax integrity and enhanced tax transparency measures.

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Investment belts tightened under new thin capitalisation measures

Five weeks after Treasury’s release of exposure draft legislation to amend the thin capitalisation rules, as announced in 2023 Federal Budget (Exposure Draft), the Treasury Laws Amendment (Making...

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New anti-avoidance rule denying deductions for payments relating to intangible assets

On 23 June 2023, Treasury released further draft legislation to deny deductions for payments by Significant Global Entities (SGEs) relating to intangible assets connected with low corporate tax...

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Commissioner of Taxation charges with a Sabre to attack documents held offshore

Following the interlocutory decision of the Federal Court Mylan Australia Holding Pty Ltd v Commissioner of Taxation [2023] FCA 672 (Mylan) made on 21 June 2023, taxpayers facing information...

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High Court unanimously finds that GST payments are not unconstitutional

On 14 June 2023, the High Court held that payment of notional GST by a local government body, was not a tax on State property, and therefore did not contravene section 114 of the Commonwealth...

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Green maze
Do your international arrangements with intangible assets pass the test?

The current scrutiny of the Australian tax outcomes relating to the intangible assets of international groups continues. On 17 May 2023, the Australian Taxation Office (ATO) issued Practical...

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Constitutional challenge to validity of state charge on e-vehicles

The High Court of Australia is currently considering whether Victorian legislation imposing a fee on the use of zero or low-emission vehicles is contrary to s 90 of the Commonwealth Constitution in...

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Guardian: the Full Federal Court confirms Part IVA applies on round two of trust distributions

The Commissioner of Taxation (Commissioner) has been actively pursuing the application of the anti-avoidance provisions to trust structures and trust distributions. In the most recent decision, the...

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Deductions for depreciating assets – no guarantee that the reasoning in Shell Energy applies

The ATO has issued its decision impact statement (DIS) about a year after the Full Federal Court decision in Shell Energy Holdings Australia v Commissioner of Taxation [2022] FCAFC 2 (Shell Energy).

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Taxpayer win in Full Federal Court Appeal against Commissioner on GST Margin Scheme

On 22 December 2022, the Full Federal Court of Australia unanimously decided for the taxpayer in Commissioner of Taxation v Landcom. The decision is a useful reminder of key principles in statutory...

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Court finds arrangements that include a trustee's income distribution decisions are Part IVA schemes

A single judge of the Federal Court has upheld a decision of the Commissioner of Taxation (Commissioner) to apply the general anti-avoidance rule, Part IVA, to arrangements that include the income...

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ATO Decision Impact Statement regarding Aurizon: clear objective evidence is important

On 25 August 2022, the Commissioner issued his decision impact statement in relation to Aurizon Holdings Limited v Commissioner of Taxation [2022] FCA 368 (Aurizon).

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Updated ATO approach to accessing records and information

On 22 June 2022, the Australian Taxation Office (ATO) published its finalised Protocol for claiming legal professional privilege (the Protocol). The Protocol has been developed to assist taxpayers...

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Gavel on a desk
Insights from the Federal Court’s latest decision on LPP

We recently commented upon a heavily redacted version of Moshinsky J’s judgment in Commissioner of Taxation v PricewaterhouseCoopers [2022] FCA 278 (PwC case).

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Cubed letters spelling tax on top of coins
The ATO ramps up its recovery of existing and anticipated tax debts

Central to the Australian taxation system is the concept of self-assessment. Voluntary compliance for the payment of tax related liabilities is strong with Australian Tax Office (ATO) data...

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LPP “Smorgasbord” wars: Commissioner not entitled to all taxpayer’s documents

Moshinsky J handed down (in part) the highly anticipated decision: Commissioner of Taxation v Pricewaterhouse Coopers [2022] FCA 278, finding that only a portion of the respondent’s documents over...

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Tax litigation to watch in 2022

The Australian Taxation Office’s (ATO) stated approach to tax disputes is to seek to prevent them where appropriate.

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Federal Court agrees that deductions should be denied for interest on financing

On 17 December 2021, the Federal Court of Australia published the decision of Justice Moshinsky in Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation [2021] FCA 1597.

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