During the Federal Budget 2017-18, Australian Treasurer Scott Morrison announced that Australia will introduce hybrid mismatch provisions applicable to banks and financial institutions and tighten its multinational anti-avoidance law (MAAL). The Budget documents and a new Black Economy Taskforce interim report have been published.
Australia aims to strengthen the integrity of MAAL by ensuring that corporate structures involving foreign partnerships or foreign trusts will be subject to the law. The measures would be applicable from January 1, 2016. The government will also provide $28.2 million to the Australian Tax Office to target serious and organized crime in the tax system.
In addition, The Black Economy Taskforce has delivered an interim report to the government and the government has accepted some recommendations for immediate action.
In accordance to OECD's work on Base Erosion and Profit Shifting project, Australia will introduce hybrid mismatches provisions that would prevent big banks and financial institutions to defer tax or to claim double deductions.
The government wants to eliminate hybrid tax mismatches in cross border transactions which relate to regulatory capital known as Additional Tier 1 capital, but the budget papers note, "this measure is estimated to have no revenue impact over the forward estimates period".
Hybrid mismatch rules used by banks to minimize tax in cross border transactions will be prohibited from January 1, 2018.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):
Foreign Direct Investment in Europe: Facilitating Expansion of Your Business
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