Current as of November 2015
TRANSFER PRICING – CHEVRON CASE
Last month, the Australian Taxation Office won a battle with Chevron Australia Holdings Pty Limited, with the Federal Court finding that the interest rate paid by the Australian resident company to its US subsidiary was not an arm’s length rate.
The case considered both the former transfer pricing rules, as well as the current rules which have applied since 1 July 2013.
The issues argued in the case are complex. Click here for a summary of the issues and the outcomes.
GST ON DIGITAL PRODUCTS
In the 2015 Federal Budget handed down in May, new rules were announced (commencing from 1 July 2017), to impose Goods and Services Tax (GST) on “inbound intangible consumer supplies” made to Australian consumers (popularly known as the “Netflix tax”).
These new rules were aimed at collecting GST on an increasing number of online services such as music and video download and streaming supplies.
Updated exposure draft legislation was released last month, seeking to clarify the operation of the new rules and incorporating feedback from its first release.
Click here to read more about this legislation.
AUSTRALIAN BUSINESS NUMBERS (ABN)
An ABN is an 11 digit number that identifies your business to the government and community. It is separate to your Tax File Number, but it is used for various tax and business purposes.
If you are carrying on business in Australia, you must register for an ABN.
Click here to find out how to apply for an ABN from outside of Australia.
DOING BUSINESS IN AUSTRALIA
For general information on tax and other regulatory issues facing foreign business looking to trade in Australia, we have prepared a “Doing Business in Australia” document.
We hope that it is helpful, and would welcome any queries or feedback you may have. Click here if you’d like to read it.
A NOTE FROM OUR PARTNERS
We have written this newsletter specifically for overseas advisers, with the aim of keeping you abreast of specific developments and changes that are occurring in Australia. These changes might effect your business, and some of your clients, so we hope that you find the articles interesting and useful.
If you would like further information about anything within this newsletter, please feel free to get in touch with Darren or Michael – their contact details are below.
I am happy to help you if there is anything from this newsletter that you need clarification on. Feel free to contact me me via email by clicking here.
As Stanley & Williamson’s Master of Tax, please feel free to contact me to discuss anything raised in this newsletter. You can send me an email by clicking here.
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under Professional Standards legislation.