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Multinationals targeted down under.
- Source :
- Taxation in Australia; Jul2017, Vol. 52 Issue 1, p22-27, 6p
- Publication Year :
- 2017
-
Abstract
- Australia enacted its multinational anti-avoidance law (MAAL) in December 2015 to prevent large multinationals using contrived selling arrangements implemented in order to avoid attributing business profits to Australia. Heavily influenced by Australia's MAAL, the New Zealand Government released its own discussion document in March 2017 proposing a permanent establishment avoidance rule (PEAR) targeting multinationals with more than €750m annual consolidated global turnover. It is unsurprising that NZ is likely to be the first country to follow Australia by introducing its own version of the MAAL. Tax policymakers of both countries experience the same challenges in relation to the digital economy, resulting from the fact that Australia and NZ are typically viewed as end-user market jurisdictions by multinational enterprises. This article provides a comprehensive comparison of the MAAL and the PEAR, including a summary of the key requirements and the main consequences of both measures. [ABSTRACT FROM AUTHOR]
- Subjects :
- COMMERCIAL law
BUSINESS turnover
CORPORATE profits
DIGITAL technology
Subjects
Details
- Language :
- English
- ISSN :
- 04948343
- Volume :
- 52
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Taxation in Australia
- Publication Type :
- Academic Journal
- Accession number :
- 124423565