Understanding intangibles in a cross-border MNE context
Published Date:
Intangible assets have become increasingly significant to the overall value of multinational enterprises. As a result, the taxation of intangibles has become a key focus area for revenue authorities. But tax law does not operate in a vacuum. To ensure that taxpayers deal appropriately with their intangible assets, it is important for taxpayers to first correctly identify and characterise these assets, having regard to intellectual property (IP) law in particular. It is only then that taxpayers can understand the tax considerations associated with the commercialisation and use of IP, particularly in a cross-border context.
This article describes common IP rights, the source of and extent of those legal rights, and their common commercialisation models. Case studies illustrate the complexities faced in certain cross-border commercialisation arrangements, including software distribution, product distribution and arrangements involving the commercialisation of multiple intangible assets, including in the context of the ATO’s draft Taxation Ruling TR 2024/D1 and the High Court’s imminent decision in FCT v PepsiCo. This article underscores the need for a multidisciplinary approach, integrating tax and IP expertise, to navigate the complex legal and tax landscape of intangible asset exploitation.
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
- Published By: Karen Litherland, Jerome Tse CTA, Kirsten Bowe, David Blight
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.
Copyright Statement
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
Share this page