Federal parliament passed new legislation to give force to an international convention, which purports to lessen multinational tax avoidance.
On Thursday (16 August, 2018), amendments to the International Tax Agreements Act 1953 were made, after first being introduced in March.
The amendments seek to give support under Australian law to the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which seeks to “lessen the opportunity for tax avoidance” across international borders.
The convention will take full effect once Australia and its treaty partners have completed relevant ratification procedures.
This is the latest in a series of government measures to address multinational tax avoidance.
Accountants have been grappling with new compliance requisites for clients with overseas holdings and associations, with some finding clients mistakenly thinking that they’re not captured by new reporting requirements.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.