Newsletter
March 2018 Newsletter
Corporate tax avoidance: latest ATO targets
The ATO has provided an update on its latest focus areas and the compliance projects it is undertaking to reduce corporate tax avoidance. These include:
• investigating possible manipulation of the thin capitalisation rules, including 27 taxpayers’ asset revaluations totalling $78 billion;
• looking into arrangements that move intellectual property assets and rights offshore to multinational entities’ related parties;
• focusing on the treatment of oil and gas industry labour costs associated with high-value asset construction;
• examining the arm’s length conditions operating in pharmaceutical industry arrangements;
• identifying tax professionals and advisers who are promoting unacceptable tax planning; and
• looking at the tax affairs of various major e-commerce players.