The proposals changes concerning the OECD documentation standards would be effective from 1 January 2016.
The proposed changes for the increase in transfer pricing penalties would be effective for income years commencing on or after 1 July 2015
The federal budget 2015 also proposes to introduce measures to counter base erosion and profit shifting (BEPS) or BEPS-related structures that seek to avoid a taxable presence in Australia—referred to as the Multinational Anti-Avoidance Law. Read the government’s exposure draft release.
In this respect, tax professionals have observed that the Australian budget has “jumped the gun” and not waited for the OECD deliverables, to be presented to G20 in October 2015.
Australia’s federal budget 2015 does not follow the UK’s diverted profits tax regime, but proposes to amend Australia’s general anti-avoidance rules (known as “Part IVA”) so as to achieve much the same outcome (domestic anti-avoidance rules generally fall outside of the scope of income tax treaties, with the result that it may be difficult for treaty partners to assert a “treaty override”).
The government will be consulting on the Multinational Anti-Avoidance Law measure and has invited submissions by 9 June 2015.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.