{"id":12518,"date":"2020-02-20T10:54:18","date_gmt":"2020-02-19T23:54:18","guid":{"rendered":"http:\/\/sites.thomsonreuters.com.au\/journals\/?p=12518"},"modified":"2020-02-20T10:54:18","modified_gmt":"2020-02-19T23:54:18","slug":"australian-tax-review-update-vol-48-pt-3","status":"publish","type":"post","link":"https:\/\/sites.thomsonreuters.com.au\/journals\/2020\/02\/20\/australian-tax-review-update-vol-48-pt-3\/","title":{"rendered":"Australian Tax Review update: Vol 48 Pt 3"},"content":{"rendered":"<p>*Please note that the links to the content in this Part will direct you to Westlaw AU. If you are using Checkpoint, the links can be found in the <strong>Checkpoint PDF <\/strong>at the bottom of this post.<\/p>\n<p>To purchase an article, please email:\u00c2\u00a0<a href=\"mailto:LTA.Service@thomsonreuters.com\">LTA.Service@thomsonreuters.com<\/a>\u00c2\u00a0or\u00c2\u00a0contact us on 1300 304 195\u00c2\u00a0(Australian customers) or +61 2 8587 7980\u00c2\u00a0(international customers) during business hours\u00c2\u00a0(Mon-Fri, 8am-6pm AEST).<\/p>\n<p>The latest issue of the <em>Australian Tax Review<\/em><em>\u00c2\u00a0<\/em>(Volume 48 Part 3) contains the following material:<\/p>\n<p><a href=\"https:\/\/www.westlaw.com.au\/maf\/wlau\/ext\/app\/document?docguid=I06af2cb93bbe11ea867ef5a4d6202a58&amp;tocDs=AUNZ_AU_JOURNALS_TOC&amp;isTocNav=true&amp;startChunk=1&amp;endChunk=1\" target=\"_blank\" rel=\"noopener\">EDITORIAL<\/a> \u00e2\u20ac\u201c <em>General Editors: Dale Pinto and Kerrie Sadiq<\/em><\/p>\n<ul>\n<li><strong>The Morass of Our Tax Regime <\/strong><\/li>\n<\/ul>\n<h3>Articles<\/h3>\n<p><a href=\"https:\/\/www.westlaw.com.au\/maf\/wlau\/ext\/app\/document?docguid=I06af2cb23bbe11ea867ef5a4d6202a58&amp;tocDs=AUNZ_AU_JOURNALS_TOC&amp;isTocNav=true&amp;startChunk=1&amp;endChunk=1\" target=\"_blank\" rel=\"noopener\"><em><strong>The Application of Australia\u00e2\u20ac\u2122s Domestic Tax Laws and Tax Treaties Where a Foreign Company is a Resident<\/strong><\/em><\/a> \u00e2\u20ac\u201c Norman Hanna<\/p>\n<p style=\"text-align: justify;\">This article provides an examination of the Australian income tax implications that may arise if the Commissioner is successful in applying TR 2018\/5 such that a foreign incorporated company is considered an Australian tax resident on the basis of central management and control. Many of the foreign incorporated companies caught by TR 2018\/5 will also be regarded as resident in their country of incorporation and thus a \u00e2\u20ac\u0153dual resident\u00e2\u20ac\u009d. Although Australia has a tax treaty network that is available in some cases to potentially resolve the issue of dual residence for treaty purposes, a range of domestic tax law implications will arise when a foreign incorporated company is a dual resident. This article highlights the Australian tax issues faced by a dual resident, including the importance of the relationship between tax treaties and domestic law in addressing these issues.<\/p>\n<p><a href=\"https:\/\/www.westlaw.com.au\/maf\/wlau\/ext\/app\/document?docguid=I06af2cb63bbe11ea867ef5a4d6202a58&amp;tocDs=AUNZ_AU_JOURNALS_TOC&amp;isTocNav=true&amp;startChunk=1&amp;endChunk=1\" target=\"_blank\" rel=\"noopener\"><em><strong>Streaming of Franking Credits Curtailed by Bamford-Induced Amendments <\/strong>\u00e2\u20ac\u201c <strong>an Unintended Consequence?<\/strong><\/em><\/a> \u00e2\u20ac\u201c Brett Freudenberg and Dale Boccabella<\/p>\n<p style=\"text-align: justify;\">In 2011, the provisions providing for allocation to beneficiaries of a trust\u00e2\u20ac\u2122s franked distributions and associated tax attributes (franking credit tax offsets) were amended in light of the High Court decision in <em>Commissioner of Taxation v Bamford<\/em>. The concern from Bamford was that streaming of receipts of a discretionary trust may no longer be available in light of the proportionate view interpretation of the rule that allocates the trust\u00e2\u20ac\u2122s taxable income to beneficiaries. The overwhelming aim of the 2011 amendments was to cement the streaming of a trust\u00e2\u20ac\u2122s franked distributions and associated tax attributes (and net capital gains) to selected beneficiaries to the exclusion of other entitled beneficiaries. However, the amended provisions prevent streaming of franking credits where the distribution is extinguished by related expenses. However, the old provisions, as confirmed in the recent <em>Thomas v Federal Commissioner of Taxation <\/em>decisions, permitted streaming in these situations.<\/p>\n<p><a href=\"https:\/\/www.westlaw.com.au\/maf\/wlau\/ext\/app\/document?docguid=I06af2cb03bbe11ea867ef5a4d6202a58&amp;tocDs=AUNZ_AU_JOURNALS_TOC&amp;isTocNav=true&amp;startChunk=1&amp;endChunk=1\" target=\"_blank\" rel=\"noopener\"><em><strong>Tax Implications of Intangibles in the World of the BEPS: Do APAs Still Have a Role to Play in the Tax Planning Strategies of Multinationals?<\/strong><\/em><\/a> \u00e2\u20ac\u201c Ranjana Gupta<\/p>\n<p style=\"text-align: justify;\">This article investigates the use of Advance Pricing Agreements (APAs) by multinational enterprises (MNEs) for tax planning and risk allocation purposes in relation to cross-border transactions. The use of APAs for intellectual property (IP) transactions by MNEs to adjust or defer their tax liability is evaluated in light of the recent developments implemented by various jurisdictions under the Organisation for Economic Co-operation and Development\u00e2\u20ac\u2122s Base Erosion and Profit Shifting (BEPS) Action Plan. To determine how MNEs engage in APAs to \u00e2\u20ac\u0153validate\u00e2\u20ac\u009d their strategies to adjust or defer their tax liability through complicated arrangements that focus on the use of IP and exploiting differences in countries\u00e2\u20ac\u2122 laws and regulations, recent European Commission investigations relating to IKEA, Starbucks, Amazon and McDonald\u00e2\u20ac\u2122s are analysed. The article demonstrates that given the rising number of APAs in the global market, trends indicate that APAs will continue to remain an optimal and preferred solution for transfer-pricing disputes in the foreseeable future.<\/p>\n<p>For the PDF version of the table of contents, click here: <a href=\"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-content\/uploads\/sites\/3\/2020\/01\/Westlaw-AU-AT-Rev-Vol-48-No-3-Contents.pdf\">Westlaw AU &#8211; AT Rev Vol 48 No 3 Contents<\/a>\u00c2\u00a0or here: <a href=\"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-content\/uploads\/sites\/3\/2020\/01\/Checkpoint-AT-Rev-Vol-48-No-3-Contents.pdf\">Checkpoint &#8211; AT Rev Vol 48 No 3 Contents<\/a>.<\/p>\n<p><a href=\"http:\/\/bit.ly\/3atFcdL\" target=\"_blank\" rel=\"noopener\">Click here to access this Part on Westlaw AU<\/a><\/p>\n<p><a href=\"http:\/\/bit.ly\/2TK9OBI\" target=\"_blank\" rel=\"noopener\">Click here to access this Part on Checkpoint<\/a><\/p>\n<p>For general queries, please contact:\u00c2\u00a0<a href=\"mailto:tlranz.journal.orders@thomsonreuters.com\">tlranz.journal.orders@thomsonreuters.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest Part of the Australian Tax Review includes an Editorial, and the following articles: &#8220;The Application of Australia\u00e2\u20ac\u2122s Domestic Tax Laws and Tax Treaties Where a Foreign Company is a Resident&#8221; \u00e2\u20ac\u201c Norman Hanna; &#8220;Streaming of Franking Credits Curtailed by Bamford-Induced Amendments \u00e2\u20ac\u201c an Unintended Consequence?&#8221; \u00e2\u20ac\u201c Brett Freudenberg and Dale Boccabella; and &#8220;Tax Implications of Intangibles in the World of the BEPS: Do APAs Still Have a Role to Play in the Tax Planning Strategies of Multinationals?&#8221; \u00e2\u20ac\u201c Ranjana Gupta.<\/p>\n","protected":false},"author":17,"featured_media":11957,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[230,38,39],"tags":[14481,14482,229,14483,3002,14484,5944,3477,7402,14485,14486,14487,14488,14489,4449,14490,14491,14492,14493,1853,14494,14495,14496,14497,14498,14499],"class_list":["post-12518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australian-tax-review","category-journals","category-update-summaries","tag-advance-pricing-agreements-apas-by-multinational-enterprises-mnes","tag-amazon","tag-at-rev","tag-base-erosion-and-profit-shifting-beps-action-plan","tag-brett-freudenberg","tag-commissioner-of-taxation-v-bamford","tag-cross-border-transactions","tag-dale-boccabella","tag-dale-pinto","tag-domestic-tax-laws-and-tax-treaties-where-a-foreign-company-is-a-resident","tag-dual-residence","tag-franking-credit-tax-offsets","tag-ikea","tag-intellectual-property-ip-transactions","tag-kerrie-sadiq","tag-mcdonalds","tag-norman-hanna","tag-organisation-for-economic-co-operation-and-development","tag-ranjana-gupta","tag-risk-allocation","tag-starbucks","tag-streaming-of-franking-credits-curtailed-by-bamford-induced-amendments","tag-tax-planning","tag-the-morass-of-our-tax-regime","tag-thomas-v-federal-commissioner-of-taxation","tag-tr-2018-5"],"_links":{"self":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts\/12518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/comments?post=12518"}],"version-history":[{"count":0,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/posts\/12518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/media\/11957"}],"wp:attachment":[{"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/media?parent=12518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/categories?post=12518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.thomsonreuters.com.au\/journals\/wp-json\/wp\/v2\/tags?post=12518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}