Footnotes

Chapter 1 - Introduction and overview of the Bill

[1]        Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 3.

[2]        Explanatory Memorandum, p. 6.

[3]        Explanatory Memorandum, p. 5.

[4]        Explanatory Memorandum, p. 9.

[5]        Senator the Hon Mark Arbib, 'Maintaining the Effectiveness of the General Anti-Avoidance Rule,' media release, 1 March 2012, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2012/010.htm&pageID=003&min=mva&Year=&DocType.

[6]        Explanatory Memorandum, p. 5.

[7]        Senator the Hon Mark Arbib, 'Maintaining the Effectiveness of the General Anti-Avoidance Rule,' media release, 1 March 2012, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2012/010.htm&pageID=003&min=mva&Year=&DocType.

[8]        This summary of RCI Pty Limited v Commissioner of Taxation [2011] FCAFC 104 draws on the summary in House of Representatives Standing Committee on Economics, Advisory Report on the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, March 2013, pp. 31–32.

[9]        Senator the Hon Mark Arbib, 'Maintaining the Effectiveness of the General Anti-Avoidance Rule,' media release, 1 March 2012.

[10]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 43.

[11]      The Treasury, submission 16 to the House Standing Committee on Economics, p. 3.

[12]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, pp. 49–50; Explanatory Memorandum, p. 3.

[13]      Explanatory Memorandum, p. 14.

[14]      Explanatory Memorandum, p. 11.

[15]      Explanatory Memorandum, p. 12.

[16]      Explanatory Memorandum, p. 12.

[17]      Explanatory Memorandum, p. 19.

[18]      Explanatory Memorandum, p. 19.

[19]      Explanatory Memorandum, pp. 16–17.

[20]      Explanatory Memorandum, p. 13.

[21]      Explanatory Memorandum, p. 23.

[22]      Explanatory Memorandum, p. 27.

[23]      Explanatory Memorandum, p. 13.

[24]      Explanatory Memorandum, pp. 13–14.

[25]      Explanatory Memorandum, p. 27.

[26]      Explanatory Memorandum, p. 27.

[27]      Explanatory Memorandum, pp. 14–15.

[28]      Explanatory Memorandum, pp. 16–17.

[29]      Sourced from Explanatory Memorandum, pp. 17–18.

[30]      Treasury, Maintaining the Effectiveness of the General Anti-Avoidance Rule, Summary of Consultation Process, p. 1. 

[31]      Treasury, Maintaining the Effectiveness of the General Anti-Avoidance Rule, Summary of Consultation Process, p. 1.

[32]      OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 19.

[33]      Explanatory Memorandum, p. 47.

[34]      Explanatory Memorandum, p. 32.

[35]      Les Nielson, Parliamentary Library, Bills Digest No. 91, 2012–13, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[36]      OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 18.

[37]      OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 18.

[38]      OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 18.

[39]      Cited in Explanatory Memorandum, p. 34.

[40]      OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 12.

[41]      Treasury, Income tax: cross border profit allocation – Review of transfer pricing rules, Consultation Paper, 1 November 2011, p. 4.

[42]      Les Nielson, Parliamentary Library, Bills Digest No. 91, 2012–13, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[43]      Treasury, Income tax: cross border profit allocation – Review of transfer pricing rules, Consultation Paper, 1 November 2011, p. 5.

[44]      Explanatory Memorandum, p. 32.

[45]      Explanatory Memorandum, p. 33.

[46]      Explanatory Memorandum, p. 57.

[47]      Treasury, Income tax: cross border profit allocation – Review of transfer pricing rules, Consultation Paper, 1 November 2011, p. 4.

[48]      Explanatory Memorandum, p. 33.

[49]      Explanatory Memorandum, p. 31.

[50]      Explanatory Memorandum, p. 3.

[51]      Explanatory Memorandum, p. 33.

[52]      Explanatory Memorandum, p. 41.

[53]      Explanatory Memorandum, p. 48–49.

[54]      Explanatory Memorandum, p. 48. For a more detailed definition, see Explanatory Memorandum, pp. 57–58.

[55]      Explanatory Memorandum, p. 34.

[56]      Explanatory Memorandum, p. 58.

[57]      Explanatory Memorandum, p. 34.

[58]      Explanatory Memorandum, p. 45.

[59]      Explanatory Memorandum, pp. 46–47.

[60]      Explanatory Memorandum, pp. 64–66.

[61]      Explanatory Memorandum, p. 64.

[62]      Explanatory Memorandum, p. 66. For a more detailed explanation, see Explanatory Memorandum, pp. 66–70.

[63]      Explanatory Memorandum, p. 46.

[64]      Explanatory Memorandum, pp. 51–56.

[65]      Explanatory Memorandum, pp. 42, 70–74.

[66]      The Hon David Bradbury MP, House of Representatives Hansard, 13 February 2013, p. 1127.

[67]      The Hon David Bradbury MP, House of Representatives Hansard, 13 February 2013, p. 1127.

[68]      Explanatory Memorandum, p. 77.

[69]      Explanatory Memorandum, p. 82.

[70]      Explanatory Memorandum, p. 76.

[71]      On the differences between the 'relevant business activity' approach and the 'functionally separate entity' approach, see W. Joseph Murphy and Geoffrey Armstrong (PricewaterhouseCoopers), Transfer pricing in the context of a PE: the OECD view, June 2007, pp. 1–3, http://www.pwc.com/en_US/us/transfer-pricing-strategies/assets/transfer_pricing_and_permanent_establishments_oecd_view.pdf. 

[72]      Explanatory Memorandum, p. 86.

[73]      Explanatory Memorandum, p. 87.

[74]      Explanatory Memorandum, p. 36.

[75]      Explanatory Memorandum, p. 36.

[76]      Explanatory Memorandum, p. 36.

[77]      Explanatory Memorandum, pp. 37–39.

[78]      The Hon Bill Shorten MP, 'Robust Transfer Pricing Rules for Multinationals,' media release, 1 November 2011, http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2011/145.htm&pageID=003&min=brs&Year=&DocType=.

[79]      Treasury, Income tax: cross border profit allocation – Review of transfer pricing rules, Consultation Paper, 1 November 2011.

[80]      See http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2011/Transfer-Pricing-Rules.

[81]      Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 (Schedule 2) – Modernisation of Transfer Pricing Rules – Summary of Consultation Process, p.1, http://www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/2012/Modernisation%20of%20transfer%20pricing%20rules/Key%20Documents/PDF/transferpricing_summary.ashx.

[82]      Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 (Schedule 2) – Modernisation of Transfer Pricing Rules – Summary of Consultation Process, pp. 1–2.

Chapter 2 - Views on schedule 1: The general anti-avoidance rule

[1]        The Tax Institute, submission 12, p. 3.

[2]        Mr Michael Bersten, Partner, PricewaterhouseCoopers, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, 30 April 2013, p. 27; Institute of Chartered Accountants Australia, submission 13, pp. 3–4.

[3]        Mr Ken Schurgott, Immediate Past President, The Tax Institute, Proof Committee Hansard, p. 17; Mr Paul Stacy, Head of Tax Policy, Institute of Chartered Accountants Australia, Proof Committee Hansard, p. 18; Mr Michael Bersten, Partner, PricewaterhouseCoopers, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 26.

[4]        Corporate Tax Association, submission 8, p. 2.

[5]        Corporate Tax Association, submission 8, p. 3 (attachment 3).

[6]        Law Council of Australia, submission 11, p. 2 (schedule 1 section).

[7]        Mr Mark Friezer, Chair, Taxation Committee, Business Law Section, Law Council of Australia, Proof Committee Hansard, 30 April 2013, p. 32.

[8]        Mr Michael Bersten, Partner, PricewaterhouseCoopers, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 29.

[9]        Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, pp. 50–51.

[10]      Ms Kate Roff, Principal Adviser, Law Design Practice, Revenue Group, Department of the Treasury and Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 51.

[11]      Mr Jonathan Woodger, Deputy Chief Tax Counsel, Australian Taxation Office, Proof Committee Hansard, 30 April 2013, pp. 43–44.

[12]      Cleary Hoare Solicitors, submission 9, p. 3.

[13]      Mr Ken Schurgott, Immediate Past President, The Tax Institute, Proof Committee Hansard, 30 April 2013,p. 17.

[14]      The Tax Institute, submission 12, p. 3.

[15]      The Law Council of Australia, submission 11, pp. 2–3 (schedule 1 section).

[16]      Institute of Chartered Accountants Australia, submission 13, p. 1.

[17]      Mr Ken Schurgott, Immediate Past President, The Tax Institute, Proof Committee Hansard, 30 April 2013, p. 18.

[18]      The Tax Institute, submission 12, pp. 4–5.

[19]      Ms Deepti Paton, Tax Counsel, The Tax Institute, Proof Committee Hansard, 30 April 2013, p. 28.

[20]      Mr Michael Bersten, Partner, PricewaterhouseCoopers, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 27.

[21]      Corporate Tax Association, submission 8, p. 4 (attachment 3).

[22]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 54.

[23]      The Treasury, submission 16, House Standing Committee on Economics inquiry on the bill, p. 6, https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/profitshiftingbill/subs.htm.  

[24]       Ms Kate Roff, Principal Adviser, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 55.

[25]       Mr Jonathan Woodger, Deputy Chief Tax Counsel, Australian Taxation Office, Proof Committee Hansard, 30 April 2013, p. 55.

[26]      The Tax Institute, submission 12, p. 4.

[27]      Mr Ken Schurgott, Immediate Past President, The Tax Institute, Proof Committee Hansard, 30 April 2013, p. 28.

[28]      The Treasury, submission 16, House Standing Committee on Economics inquiry on the bill, p. 4, https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/profitshiftingbill/subs.htm.   

[29]      Ms Kate Roff, Principal Adviser, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p 53.

[30]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p 49.

[31]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p 51.

[32]      Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p 52.

[33]      Mr Jonathan Woodger, Deputy Chief Tax Counsel, Australian Taxation Office, Proof Committee Hansard, 30 April 2013, pp. 52–53.

[34]      Explanatory Memorandum, p. 18.

[35]      Mr Mark Friezer, Chair, Taxation Committee, Business Law Section, Law Council of Australia, Proof Committee Hansard, 30 April 2013, p. 32.

[36]      Explanatory Memorandum, pp. 14–15.

Chapter 3 - Views on schedule 2: Modernisation of the transfer pricing rules

[1]        Federal Chamber of Automotive Industries, submission 4, p. 3; The Tax Institute, submission 12, p. 8; Institute of Chartered Accountants Australia, submission 13, p. 6; Mr Mark Friezer, Chair, Taxation Committee, Business Law Section, Law Council of Australia, Proof Committee Hansard, p. 35; Chevron, submission 5, pp. 2–3; Ernst & Young, submission 7, pp. 3–4; Corporate Tax Association, submission 8, p. 2 (attachment 3); MCA, submission 14, p. 3; KPMG, submission 15, p. 3; RSM Bird Cameron, submission 17, p. 3. 

[2]        Mr Anthony Seve, Partner, KPMG, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 19. 

[3]        Mr Damian Preshaw, Director, Global Transfer Pricing Services, KPMG, representing the Tax Institute, Proof Committee Hansard, 30 April 2013, p. 19. 

[4]        GE, submission 3, p. 1. 

[5]        Mr Damian Preshaw, Director, Global Transfer Pricing Services, KPMG, representing the Tax Institute and Mr Anthony Seve, Partner, KPMG, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 19. 

[6]        KPMG, submission 15, p. 3. 

[7]        Mr Mark Friezer, Chair, Taxation Committee, Business Law Section, Law Council of Australia, Proof Committee Hansard, 30 April 2013, p. 31. 

[8]        Ernst & Young, submission 7, p. 3. 

[9]        Chevron, submission 5, p. 2. 

[10]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 46.

[11]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 46. 

[12]      Explanatory Memorandum, pp. 43–44.

[13]      Mr Anthony McDonald, Director, Industry Operations, Federal Chamber of Automotive Industries, Proof Committee Hansard, 30 April 2013, p. 2; Federal Chamber of Automotive Industries, submission 4, p. 2.

[14]      Mr Anthony McDonald, Director, Industry Operations, Federal Chamber of Automotive Industries, Proof Committee Hansard, 30 April 2013, p. 5.

[15]      Ms Vanda Davis, Chair, Federal Chamber of Automotive Industries Taxation Committee, Federal Chamber of Automotive Industries, Proof Committee Hansard, 30 April 2013, p. 6.

[16]      Ernst & Young, submission 7, p. 4. A similar point is also made by the Corporate Tax Association, submission 8, p. 2 (attachment 3).

[17]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 57.

[18]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 57.

[19]      Mr Tony McDonald, Principal Adviser, Corporate and International Tax Division, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 58.

[20]      Proof Committee Hansard, 30 April 2013, p. 8.

[21]      The Tax Institute, submission 12, pp. 15–16; Institute of Chartered Accountants Australia, submission 13, p. 8; Chevron, submission 5, pp. 3–4; GE, submission 3, p. 2; PricewaterhouseCoopers, submission 6, p. 2; Corporate Tax Association, submission 8, p. 2 (attachment 3); Minerals Council of Australia, submission 14, p. 4; KPMG, submission 15, pp. 6–7.

[22]      Tax Justice Network Australia, submission 16, p. 7.

[23]      Treasury, correspondence to the Committee, 8 May 2013, p. 8.

[24]      Treasury, correspondence to the Committee, 8 May 2013, p. 8.

[25]      Federal Chamber of Automotive Industries, submission 4, p. 3.

[26]      Ernst & Young, submission 7, p. 5.

[27]      Mr Damian Preshaw, Director, Global Transfer Pricing Services, KPMG, representing the Tax Institute, Proof Committee Hansard, 30 April 2013, p. 17; The Tax Institute, submission 12, p. 11.

[28]      Mr Anthony Seve, Partner, KPMG, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 26.

[29]      Chevron, submission 5, p. 3; MCA, submission 14, p. 2.

[30]      Mr Mark Friezer, Chair, Taxation Committee, Business Law Section, Law Council of Australia, Proof Committee Hansard, 30 April 2013, p. 31.

[31]      GE, submission 3, p. 2.

[32]      PWC, submission 6, p. 3; Law Council of Australia, submission 11, p. 4 (schedule 2 section).

[33]      KPMG, submission 15, pp. 4–5. 

[34]      Mr Michael Jenkins, Assistant Commissioner, Large Business and International, Australian Tax Office, Proof Committee Hansard, 30 April 2013, p. 56.

[35]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 56.

[36]      Treasury, correspondence to the Committee, 8 May 2013, p. 5.

[37]      Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, 30 April 2013, p. 56.

[38]      The Tax Institute, submission 12, p. 11.

[39]      Mr Anthony Seve, Partner, KPMG, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 21.

[40]      Mr Anthony Seve, Partner, KPMG, representing the Institute of Chartered Accountants Australia, Proof Committee Hansard, 30 April 2013, p. 22.

[41]      MCA, submission 14, p. 3.

[42]      MCA, submission 14, p. 3.

[43]      Pitcher Partners, submission 2, pp. 1–2.

[44]      RSM Bird Cameron, submission 17, p. 4.

[45]      Dr Mark Zirnsak, Secretariat, Tax Justice Network Australia, Proof Committee Hansard, 30 April 2013, p. 39.

[46]      Treasury, correspondence to the Committee, 8 May 2013, p. 6.

[47]      Treasury, correspondence to the Committee, 8 May 2013, p. 7.

[48]      Australian Bankers' Association, submission 10, p. 1.

[49]      Sutherland, Proof Committee Hansard, 30 April 2013, p. 11. 

[50]      Australian Bankers' Association, submission 10, p. 3 (attachment).

[51]      Australian Bankers' Association, submission 10, p. 4 (attachment).

[52]      Proof Committee Hansard, 30 April 2013, pp. 9–16.

[53]      Treasury, correspondence to the Committee, 8 May 2013, p. 12.

[54]      Treasury, correspondence to the Committee, 8 May 2013, pp. 12–13.

Coalition Senators' Dissenting Report

[1]        Mr Tom Reid, General Manager, Law Design Practice, Revenue Group, Treasury, Proof Committee Hansard, 30 April 2013, p.50.

[2]        Proof Committee Hansard, 30 April 2013, pp. 54-55.

[3]        Proof Committee Hansard, 30 April 2013, p. 57.

[4]        General Electric, submission 3, p. 1.

[5]        Ms Kristen Baker, Manager, International Tax Integrity Unit, Department of the Treasury, Proof Committee Hansard, pp. 57-58.