News Asia/Pacific
Leading Global Resources Company Settles Australian Transfer Pricing Dispute for $386 Million
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November 20th, 2018
BHP Billiton has reached an agreement with the Australian Taxation Office (ATO) to settle a transfer pricing dispute relating to its marketing operations in Singapore. The settlement fully resolved the longstanding dispute between BHP and the Australian Taxation Office for the period 2003-2018.
Australia Consults On Debt Equity Rules And Transfer Pricing Rules Interaction
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November 1st, 2018
The Australian Taxation Office (ATO) has launched a public consultation on a draft taxation determination (TD 2018/D6) concerning whether the debt and equity rules in Division 974 of the Income Tax Assessment Act 1997 can limit the operation of the transfer pricing rules in Subdivision 815-B of the Income Tax Assessment Act 1997.
Illustrations .
Australian Parliament Passes Legislation To Bring Forward Scheduled Tax Relief for Small and Medium Businesses
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October 18th, 2018
Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 was passed by both houses of the Australian parliament. The Bill accelerates the reduction of income tax rates for incorporated and unincorporated small businesses.
Australian Tax Court Decision On Deemed Source Rule In Australia-India Treaty
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October 16th, 2018
The Federal Court of Australia handed down its decision in Satyam Computer Services Limited v Commissioner of Taxation, which was involved in the “deemed source” rule in the Australia-India double tax treaty.
Background .
Australia Updates Mutual Agreement Procedure Guidance
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October 9th, 2018
The Australian Tax Authority (ATO) has reviewed and updated the mutual agreement procedure to reflect the OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS). The updated guidance caters more detailed information as followed:
Information requirements for MAP requests.
ATO Publishes Practical Compliance Guideline On Diverted Profits Tax
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September 27th, 2018
The Australian Tax Office (ATO) published the final form of the Practical Compliance Guideline (PCG) 2018/5 Diverted Profits Tax (DPT) and Law Companion Ruling (LCR) 2018/6 Diverted profits tax as complements to the administrative guidance ATO provided in Law Administration Practice Statement (PSLA) 2017/2 Diverted profits tax assessments.
Background to DPT .
New Zealand Seeks For Public Feedback On Draft BEPS Guidance
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August 28th, 2018
New Zealand reached out to the public for feedback on draft BEPS Guidance material issued at the same day to improve the content and presentation of the material. Based on the comments received, a clear and understandable guidance will be finalised in early 2019.
Amendmend to DTA Between New Zealand And Hong Kong Enters Into Force
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August 14th, 2018
An amendment to the Double Tax Agreement (DTA) between New Zealand and Hong Kong entered into force. This amendment widens the exchange of information provisions for the purposes of eradicating tax evasion and avoidance.
New Zealand Finalizes MNE Tax Avoidance Rules
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June 28th, 2018
The Inland Revenue in New Zealand announced the third reading of the Taxation (Neutralising Base Erosion and Profit Shifting) Bill had been passed in Parliament, which contains measures to prevent multinational companies from avoiding tax by shifting profits out of New Zealand.
Enforcement of the Bill being Next Week .
Australia Publishes Guidance For Large Public And Multinational Businesses On Assessing Tax Governance
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June 26th, 2018
The Australian Taxation Office (ATO) issues practical guidance to assist large public and multinational businesses in understanding how tax authority rates tax governance when applying justified trust methodology.
Definition of Tax Governance .
Australia Consults The Public On Restructures of Hybrid Mismatch Arrangements
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June 26th, 2018
Australia government released its draft Practical Compliance Guideline (PCG) 2018/D4 Part IVA of the Income Tax Assessment Act 1936 and Restructures of Hybrid Mismatch Arrangements. The Australian Taxation Office (ATO) has invited all interested parties to comment on this draft law by 20 July 2018.
Australia Finalises Rules On Reporting Foreign Exchange Gains And Losses In Local File
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June 21st, 2018
The Australian Taxation Office finalised the rules for reporting foreign exchange gains and losses in Local File – Part A in the second year of reporting, after considering the feedback from consultation in 2017.
Local File Transaction Categories involved .
Australia To Kick Off Corporate Tax Cut Plan
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May 31st, 2018
It has been confirmed by Mathias Cormann, the Finance Minister in Australia, that a new company tax legislation and an income tax package will be submitted to the Senate before parliament rises in late June. Under the new package, the government proposes to cut the company tax rate from 33% to 25%.
Australia Reveals New Tax Incentives Including Crackdown on R&D
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May 9th, 2018
The Australian government has used its 2018-19 Budget to announce a crackdown on research and development (R&D) tax incentives. Australian Treasurer Scott Morrison said he would unveil new proposals for taxing multinational digital companies within weeks.
Australia To Implement Hybrid Mismatch Rules
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March 9th, 2018
The Australian government opened a public consultation on the draft legislation for adopting the OECD recommendations to eliminate double non-taxation benefits from hybrid mismatch arrangements. This intention of the government was firstly announced in the 2016-17 Budgets and repeated in 2017-2018 Budget.
Singapore 2018 Budget: Lighter Income Tax And GST On Digital Economy
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February 20th, 2018
The Singapore Finance Minister Heng Swee Keat presented his Budget for Financial Year 2018 to the Parliament. In the statement, Heng announced several tax changes for regional economic promotion.
New Zealand Rectifies Error In Restricted Transfer Pricing Rule
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February 20th, 2018
The Inland Revenue in New Zealand issued a note on revising the drafting error in the Taxation (Neutralizing Base Erosion and Profit Shifting) Bill, which is currently considered by the Finance and Expenditure Committee. Wording in the Bill means that the interest deduction limitation rule applying to cross-border related party loans is not applied as widely as it should.
Australia Consults The Public To Toughen The Multinational Anti Avoidance Law
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February 13th, 2018
The Australian government opened a public consultation on a legislation draft regarding implementation issues of the Multinational Anti Avoidance Law (MAAL). The new proposal intends to strengthen the MAAL from inappropriate use of foreign trust or partnership to circumvent the application of the MAAL.
Australia Publishes Country-by-Country Reporting Guidance
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February 6th, 2018
The Australian Taxation Office (ATO) issued a guidance document on the implementation of Country-by-Country (CbC) reporting in Australia.
Country-by-Country (CbC) Report in Australia
Australia Identifies Over 1000 Taxpayers Based On Paradise Papers
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January 16th, 2018
Since last November when the Paradise Papers were released, the information leak has enabled Australia Taxation Office (ATO) to identify 1075 taxpayers in total during the past two months, with 731 individual taxpayers and 344 corporate entities respectively.
Commoditization of Tax Avoidance Practice for Individuals .
Australia Consults Public On Diverted Profit Tax Draft Law Companion Guideline
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January 4th, 2018
The Australian Taxation Office (ATO) issued a notice to consult the public on a draft Law Companion Guideline (LCG) on the Australian diverted profits tax. The draft LCG explains how the new law will apply and explains concepts introduced by the measure.
New Zealand Issues Tax System Comparison Report And Sets Up Tax Working Group
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December 21st, 2017
The Inland Revenue (IRD) in New Zealand released the report on the New Zealand tax system and how it compares internationally. On the same day, the IRD also announced members to join Sir Michael Cullen on the Tax Working Group.
More BEPS Measures By New Zealand On Transfer Pricing Audit (2)
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December 12th, 2017
The recently introduced BEPS Tax Bill has been submitted to the Parliament for its first reading. Alongside the Tax Bill, the country has also launched other measures to deal with taxation of multinationals, including transfer pricing audit on specific group of companies.
New Zealand Introduces BEPS Tax Bill
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December 8th, 2017
The Neutralizing Base Erosion and Profit Shifting (BEPS) Bill has been introduced into Parliament. It is expected to counter BEPS practices by multinational companies and prevent profits from being shifted out of New Zealand to reduce domestic taxable income.
Australia Seeks Public Comments On Hybrid Mismatch Legislation Draft
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November 28th, 2017
The Australian government announced to implement the targeted rules on hybrid mismatch arrangements recommended by the OECD to eliminate double non-taxation benefits. Simultaneously, a public consultation is opened for the community’s views on the corresponding exposure draft legislation.

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