On 5 October 2015, Final Reports were released covering 15 BEPS Actions. Those reports were formally ‘endorsed’ by the G20 at the Leaders meeting on 15 November 2015, at Antalya, Turkey.
10 February 2016: Government introduced Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016. Will enact tax integrity measures extending GST to digital products and other services imported by consumers (the so-called ‘Netflix tax’).
Board of Tax consultation commenced in August and will report in March 2016
Australia’s CFC rules meet OECD best practice guidance
Australia has already tightened its Thin Capitalisation rules
ATO already implemented exchange of rulings
To be adopted into negotiation of new / updated treaties
Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill Act became law on 11 December 2015. The multinational anti-avoidance law (section 177DA) effectively targets global MNC abuse of the permanent establishment threshold.
Other OECD recommendations are in line with Australia’s treaty practice
No fundamental change to Australia’s transfer pricing rules, but enhanced guidance to help ATO’s administration.
Estimate of BEPS problem 4‑10 per cent of global corporate income tax revenue. Further work on methodologies to measure progress required
OECD recommends countries consider adopting disclosure rules. ATO considering costs and benefits for Australia
Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 became law on 11 Dec ember 2015 (as noted above). The Act requires certain global MNC’s to prepare and lodge a Country by Country Report, and a master file and local file in an electronically ‘exchangeable’ format.
A number of countries (including Australia) are committed to binding arbitration
87 countries (including Australia) working on instrument to quickly update bilateral treaties with BEPS outcomes. To be open for signing by the end 2016