Login
iscover
After a year of talks, the federal government has introduced legislation to expand its Multinational Anti-Avoidance Law, serving as a reminder to accountants to review their clients’ partnership structures.
Tax avoidance law introduced to Parliament
29 March 2018
•
3 minute read
The legislation moves to extend the MAAL to corporate structures which involve foreign resident partners, trusts that have any foreign residents or beneficiaries or foreign trusts that temporarily have their central management and control in Australia.
The MAAL originally took effect from 1 January 2016 and prevents multinationals from escaping Australian tax by using artificial or contrived arrangements to avoid having a taxable presence in Australia.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
When the draft legislation was released in February, accountants were told be wary of the government’s intentions to “align some substance over form.”
“This is an absolute line in the sand that says, ‘we are aware of these particular structures and we're putting you on notice that we want to tax them’,” said Crowe Horwath managing partner Scott Mason at the time.
The ATO anticipates the measures will collectively raise $7 billion in income each year.
You need to be a member to post comments. Become a member for free today!
