In August 2019 the Treasurer wrote to the Board of Taxation asking the Board to conduct a review of the operation of Australia’s corporate tax residency rules. The purpose of the review is to ensure that the rules are operating appropriately in light of modern, international and commercial board practices and international tax integrity rules.
Terms of Reference
The terms of reference set out by the Treasurer are for the Board to consider whether the existing rules:
- minimise commercial uncertainty and ambiguity;
- are consistent with and aligned with modern day corporate board practices;
- protect the tax system against multinational profit shifting; and
- otherwise support Australia’s tax integrity rules as they apply to multinational corporations.
The Board has appointed Board member Neville Mitchell to lead the work on this review. Mr Mitchell is assisted by fellow Board members Dr Julianne Jaques and Mrs Ann-Maree Wolff. Representatives from academia, industry and the tax profession will also be assisting in the review.
On 6 September 2019 the Board of Taxation published a Consultation Guide on its corporate residency review project, in which it presented six consultation questions for stakeholder comment. The Board has since received numerous written submissions and has also conducted roundtable discussions in Sydney, Melbourne and Perth.
The Board has now prepared a second consultation paper for stakeholder review and input. The paper summarises the comments and feedback that have been collected by the Board to date, and sets out a number of proposed reform options. It also includes additional consultation questions for stakeholder consideration.
The Board welcomes submissions on the issues raised in the consultation paper. The closing date for submissions is 31 January 2020. Submissions can be made to CorporateResidency@taxboard.gov.au or addressed to the Treasury as follows:
Review of Australia’s corporate tax residency rules
Board of Taxation Secretariat
Parkes ACT 2600
All submissions will be published, except where the submission is made on a confidential basis.
The Board has received 13 submissions with two being confidential.
Business Council of Australia & Corporate Tax Association
APPEA letter of support
Minerals council of Australia
|Corporate Taxpayers Group||240KB|
|Financial Services Council||465KB|
|Chartered Accountants Australia and New Zealand||289KB|
|Law Council of Australia||284KB|
|Joint submission on Draft Taxation Ruling TR 2017/D2||104KB|
|Joint submission on Practical Compliance Guideline PCG 2018/D3||676KB|
Please contact the Board of Taxation Secretariat at email@example.com or +61 2 6263 4366 for more information.