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.
Under current framework, companies controlled by foreign trusts or partnership may fall outside the scope of the MAAL, which is abused by some multinationals to avoid trigger the application of MAAL.The Australian government announced in the 2017-18 Budget that it would toughen the MAAL by preventing large multinationals from using foreign trusts and partnerships in corporate structures to avoid the application of the MAAL. This will ensure that the MAAL will continue to operate as intended. All interested parties are invited to submit responses to this consultation up until 23 February 2018.
MAAL took effect from 1 January 2016 and prevents multinationals from escaping Australian tax by using artificial or contrived arrangements to avoid having a taxable presence in Australia. It applies to certain schemes on or after 1 January 2016, irrespective of when the scheme commenced, including:
Sources: Australian Government
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):