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Australia introduces DPT Bill

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On 9 February, the Australian government introduced the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017. The Diverted Profits Tax Bill 2017, which sets the 40% tax on profits, was also introduced.

Broadly, the new law will apply if:

  • a taxpayer has obtained a tax benefit in connection with a scheme in an income year;
  • the principal purpose, or one of the principal purposes of the scheme, is to obtain an Australian tax benefit or to obtain both an Australian and foreign tax benefit; and
  • none of the following tests apply: the $25m income test; a sufficient foreign tax test; and a sufficient economic substance test.
  • The DPT will apply to income years that start from 1 July 2017.
Issue: 1342
Categories: News
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