Source: The Tax Specialist Journal Article
Published Date: 1 Apr 2017
The attribution of profits to branches or permanent establishments (PEs) is exceptionally complex under Australian law. Branch attribution is also becoming more difficult due to the current base erosion and profit shifting work on branch mismatch structures and Australia's own introduction of the new multinational anti-avoidance law and diverted profits tax. This article focuses on PE attribution for banks, from an Australian inbound and outbound perspective, and describes how our approach compares to the authorised OECD approach and what other countries are doing in practice. This article also discusses a number of current practical issues and ATO focus areas in branch attribution, and how those issues would be dealt with under the authorised OECD approach. Many of these issues will also be relevant to insurance companies and other financial services entities. The article also considers the future of Australian law in this area.
More by Julian Pinson
Capital management - Presentation 14 Mar 2024
Capital management - Audio 14 Mar 2024
Capital management - Video 14 Mar 2024
Hybrid mismatches & infrastructure - Presentation 16 Mar 2019
Branch attribution for banks - Presentation 06 Feb 2019
Restructures, turnarounds and insolvency - Journal 01 Jun 2018
Restructures, turnarounds and insolvency - Presentation 07 Feb 2018
Restructures, turnarounds and insolvency - Paper 07 Feb 2018
Branch attribution - Paper 08 Feb 2017
More by Mary Hu
Progress report on OECD's proposals for Pillars 1 and 2 - Journal 01 Oct 2022
Update on hybrid rules - What's new and emerging issues - Paper 19 May 2022
Update on hybrid rules - What's new and emerging issues - Presentation 19 May 2022
OECD's Pillar 2 global minimum tax proposal: Taking the pressure off transfer pricing - Paper 09 Sep 2021
OECD's Pillar 2 global minimum tax proposal: Taking the pressure off transfer pricing - Audio 09 Sep 2021
OECD's Pillar 2 global minimum tax proposal: Taking the pressure off transfer pricing presenation - Presentation 09 Sep 2021
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags