House of Representatives Committees

| House of Representatives Standing Committee on Economics

Footnotes

Chapter 1 Introduction

[1] House of Representatives Selection Committee, Report No. 75, 14 February 2013, p. 3.

[2] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 5.

[3] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 5.

[4] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 29.

[5] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 6.

[6] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 3, 30.

[7] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 10.

[8] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 15.

[9] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 15.

[10] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 15.

[11] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 15.

[12] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 15–16.

[13] Consultation documents and submissions are available from the Treasury website at <http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/General-anti-avoidance-rule>, viewed 21 February 2013.

[14] Ensuring the effectiveness of the income tax general anti-avoidance rule consultation summary available from the Treasury website at <http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/General-anti-avoidance-rule>, viewed 21 February 2013.

[15] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 29.

[16] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 29–30.

[17] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 7–8.

[18] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 8.

[19] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 8.

[20] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 8.

[21] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[22] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[23] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 , p. 9.

[24] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[25] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 9–10.

[26] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 16.

[27] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 16.

[28] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 16–17.

[29] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 18.

[30] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 10.

[31] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 10.

[32] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 10.

[33] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 11.

[34] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 11.

[35] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 18.

[36] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 18-19.

[37] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 19.

[38] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 19.

[39] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 19.

[40] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 20.

[41] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 21.

[42] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 21.

[43] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 21.

[44] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 21–22.

[45] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 31.

[46] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 31.

[47] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[48] Organisation for Economic Co-operation and Development (OECD), OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 17.

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

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

[51] OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 23.

[52] OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, pp. 20-21.

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

[54] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 32.

[55] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 32.

[56] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 32.

[57] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 32.

[58] The Hon Bill Shorten MP, Assistant Treasurer, Robust transfer pricing rules of multinationals, Media Release No. 145, 1 November 2011.

[59] The Treasury, Income tax: cross border profit allocation—Review of transfer pricing rules, Consultation Paper, 1 November 2011, available at <http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2011/Transfer-Pricing-Rules>, viewed 21 February 2013.

[60] The Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2012 (Schedule 2)—Modernisation of transfer pricing rules: Summary of consultation process, p. 2.

[61] The Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2012 (Schedule 2)—Modernisation of transfer pricing rules: Summary of consultation process, pp. 1-2.

[62] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[63] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[64] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[65] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[66] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[67] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[68] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 41.

[69] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 41.

[70] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 41.

[71] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 41, 43.

[72] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 44–45.

[73] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 45.

[74] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 45.

[75] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 47.

[76] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 47.

[77] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 77.

[78] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 35.

[79] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 35.

[80] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 35–36.

[81] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[82] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[83] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[84] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[85] House of Representatives Selection Committee, Report No. 75, 14 February 2013, p. 3.

Chapter 2 Issues in the Bill

[1] The Hon David Bradbury MP, Assistant Treasurer, House of Representatives Hansard, 13 February 2013, p. 10.

[2] The Hon David Bradbury MP, Assistant Treasurer, House of Representatives Hansard, 13 February 2013, p. 10.

[3] Senator the Hon Mark Arbib, Assistant Treasurer, Maintaining the effectiveness of the general anti-avoidance rule, Media Release No. 10, 1 March 2012.

[4] Senator the Hon Mark Arbib, Assistant Treasurer, Maintaining the effectiveness of the general anti-avoidance rule, Media Release No. 10, 1 March 2012.

[5] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 10.

[6] RCI Pty Limited v Commissioner of Taxation [2011] FCAFC 104.

[7] RCI Pty Limited v Commissioner of Taxation [2011] FCAFC 104.

[8] Australian Taxation Office (ATO), Decision Impact Statement, Commissioner of Taxation v RCI Pty Ltd, <http://law.ato.gov.au/atolaw/view.htm?DocID=LIT/ICD/S324of2011/00001>, viewed 28 February 2012.

[9] Corporate Tax Association (CTA), Submission 7, p. 3.

[10] CTA, Submission 7, p. 1.

[11] Law Council of Australia (LCA), Submission 4, p. [4].

[12] The Tax Institute, Submission 13, p. 2.

[13] The Tax Institute, Submission 13, p. 3.

[14] Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, Explanatory Memorandum, p. 13.

[15] Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, Explanatory Memorandum, p. 12.

[16] Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, Explanatory Memorandum, p. 12.

[17] The Treasury, Submission 16, p. 3.

[18] The Treasury, Submission 16, p. 3.

[19] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 9.

[20] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 , p. 9.

[21] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 16.

[22] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 16–17.

[23] Cleary Hoare, Submission 6, p. 2.

[24] Cleary Hoare, Submission 6, p. 2.

[25] CPA, Submission 1, p. 1.

[26] The Treasury, Submission 16, p. 4.

[27] The Treasury, Submission 16, p. 4.

[28] The Treasury, Submission 16, pp. 4–5.

[29] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 6.

[30] CTA, Submission 7, p. 3.

[31] CTA, Submission 7, p. 3.

[32] CPA, Submission 1, p. 2.

[33] CPA, Submission 1, p. 2.

[34] Cleary Hoare, Submission 6, pp. 2-3.

[35] Cleary Hoare, Submission 6, p. 3.

[36] CTA, Submission 7, p. 4.

[37] CTA, Submission 7, p. 4.

[38] The Treasury, Submission 16, p. 6.

[39] The Treasury, Submission 16, p. 6.

[40] The Treasury, Submission 16, p. 6.

[41] The Treasury, Submission 16, p. 6.

[42] Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, s. 177CB(3).

[43] CTA, Submission 7, p. 5.

[44] The Treasury, Submission 16, p. 7.

[45] The Treasury, Submission 16, p. 7.

[46] CTA, Submission 7, p. 3.

[47] The Treasury, Submission 16, p. 7.

[48] The Treasury, Submission 16, p. 7.

[49] The Hon Bill Shorten MP, Assistant Treasurer, Robust transfer pricing rules of multinationals, Media Release No. 145, 1 November 2011.

[50] The Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2012 (Schedule 2)—Modernisation of transfer pricing rules: Summary of consultation process, p. 2.

[51] The Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2012 (Schedule 2)—Modernisation of transfer pricing rules :Summary of consultation process, pp. 1-2.

[52] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 33.

[53] Organisation for Economic Co-operation and Development (OECD), OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 34.

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

[55] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, pp. 44-45.

[56] The Treasury, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2012 (Schedule 2)—Modernisation of transfer pricing rules: Summary of consultation process, p. 1.

[57] OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 51.

[58] OECD, OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 22 July 2010, p. 52.

[59] GE, Submission 2, p. 1.

[60] GE, Submission 2, p. 1.

[61] The Treasury, Submission 16, p. 8.

[62] The Treasury, Submission 16, p. 8.

[63] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 45.

[64] The Treasury, Submission 16, p. 8.

[65] The Treasury, Submission 16, p. 8.

[66] GE, Submission 2, p. 1.

[67] GE, Submission 2, p. 1.

[68] CTA, Submission 7, p. 2.

[69] Institute of Chartered Accountants Australia (ICAA), Submission 8, p. 1.

[70] For example, see KPMG, Submission 9, pp. 2-3; PricewaterhouseCoopers, Submission 10, p. 2;

[71] CTA, Submission 7, p. 2.

[72] Deloitte, Submission 12, p. 1.

[73] LCA, Submission 4, pp. [6]-[7].

[74] ICAA, Submission 8, p. 3.

[75] ICAA, Submission 8, p. 4.

[76] ICAA, Submission 8, p. 4.

[77] The Treasury, Submission 16, p. 9.

[78] The Treasury, Submission 16, p. 9.

[79] The Treasury, Submission 16, p. 9.

[80] The Treasury, Submission 16, p. 9.

[81] The Treasury, Submission 16, p. 10.

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

[83] The Hon David Bradbury MP, Assistant Treasurer, House of Representatives Hansard, 13 February 2013, p. 11.

[84] GE, Submission 2, p. 2.

[85] See for example: ICAA, Submission 8, p. 1; KPMG, Submission 9, p. 4; PricewaterhouseCoopers, Submission 10, p. 2; and Deloitte, Submission 12, Appendix A, p. 1.

[86] American Chamber of Commerce in Australia, Submission 15, p. 1.

[87] PricewaterhouseCoopers, Submission 10, pp. 2-3.

[88] Inspector-General of Taxation, Review into improving the self assessment system, August 2012, p. 89.

[89] Inspector-General of Taxation, Review into improving the self assessment system, August 2012, p. 89.

[90] CTA, Submission 7, p. 2.

[91] The Treasury, Submission 16, p. 11.

[92] Subsection 284-15(1), Taxation Administration Act 1953.

[93] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 39.

[94] The Hon David Bradbury MP, Assistant Treasurer, House of Representatives Hansard, 13 February 2013, p. 11.

[95] LCA, Submission 4, p. [8].

[96] CTA, Submission 7, p. 2.

[97] PricewaterhouseCoopers, Submission 10, p. 2.

[98] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[99] Explanatory Memorandum, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, p. 36.

[100] The Treasury, Submission 16, p. 12.

[101] The Treasury, Submission 16, p. 12.

[102] The Treasury, Submission 16, p. 12.