Tim Lynch, Ablean Saoud and Andrew Bath look at the Commissioner's update to the rules regarding central management and control.
Coinciding with the release of Kong: Skull Island, the Commissioner has opted for a re-boot of his own in releasing TR 2017/D2 yesterday and the subsequent withdrawal of TR 2004/15.
For those playing along at home, Matt Popham wrote in December 2016 on the Bywater/Hua Wang Bank case and the potential impact on foreign incorporated companies being taken to have “central management and control” (CM&C) in Australia - TR 2004/15 has now been replaced to reflect this case.
The new TR 2017/D2 has the following key aspects:
So what does all this mean? In our view, TR 2017/D2 is consistent with the decision handed down last year and taxpayers should ensure that they are mindful of the below.
Will TR 2017/D2 become a classic like Back to the Future? Only time will tell.
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