Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 AUGUST 2018

ATO response to High Court decision in Bywater

Pointon Partners
Explore more from Pointon Partners

Discussion of the consequences of the new tax ruling that reverses the central management and control test.

AustraliaTax
Robert Gordon
Robert Gordon
Anthony Pointon
Anthony Pointon
Author LinkedIn connections

In a previous article we discussed the High Court of Australia decision in Bywater & Ors v FC of T: see http://pointonpartners.com.au/australian-tax-residence-for-companies-revisited-by-high-court-after-43-years/

Subsequent to the High Court decision, the ATO withdrew its previous ruling TR 2004/15, and issued a new draft ruling TR 2018/D3, and an exposure draft Practical Compliance Guideline (PCG).

After rejecting most criticisms of TR 2018/D3, the ATO has issued it in final form as TR 2018/5, and issued a draft PCG 2018/D3.

The time for submissions on PCG 2018/D3 have now closed, so it remains to be seen whether any of the criticism of it, results in any material change.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a
AustraliaTax
Holding Redlich
Holding Redlich
Article

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.
AustraliaTax
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth
AustraliaTax
Holding Redlich
Holding Redlich
Video

JONES DAY PRESENTS®: Navigating Australia's Toughening Tax Controversy Landscape (Video)

Australia's tax controversy landscape is becoming increasingly difficult for multinationals to navigate, with the Australian Taxation Office ("ATO") adopting sophisticated, assertive positions that test the limits of the law. Jones Day partners Lauren Moses and Niv Tadmore discuss the ATO's focus on transfer pricing, intangibles, and other cross-border issues, and they explain why understanding what drives the ATO is key to resolving disputes efficiently.
AustraliaTax
Jones Day
Jones Day
Article

Foreign Resident CGT Changes And Implications For M&A Transactions

Australia's foreign resident capital gains tax regime is undergoing its most significant expansion since 2006, with new rules commencing October 2026 that will fundamentally reshape how M&A transactions involving land-connected assets are structured and executed. The changes introduce a 365-day look-back test for determining whether shares or units constitute indirect Australian real property interests, broaden the definition of taxable Australian real property to capture energy, infrastructure and data-cen
AustraliaTax
Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
Article

Federal Budget 2026–27: Key Tax Changes And What Clients Need To Know

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.
AustraliaTax
Bartier Perry Solicitors
Bartier Perry Solicitors
Article

The ATO’s Firmer Approach To Small Business Debt Collection

The Australian National Audit Office's recent review of the ATO's management of small business collectable debt reveals significant findings that will reshape how tax authorities approach debt recovery. With small business debt reaching $35.9 billion and the ATO accepting all eight recommendations for reform, advisers and business owners face a new landscape of firmer collection activity and heightened accountability. Understanding these changes and their implications for unpaid tax liabilities, director pe
AustraliaTax
Worrells
Worrells
Article

Counterfeit Imports – Tougher Penalties At The Border

Australia strengthens its response to counterfeit goods importation through new legislation that creates strict liability offences and enables infringement notices at the border. The amendments aim to make counterfeit importing unprofitable by ensuring penalties and seized goods exceed potential profits. How will these changes impact intellectual property rights holders and importers operating in Australia?
AustraliaIntellectual Property
Pointon Partners
Pointon Partners