ARTICLE · 27 SEPTEMBER 2015

Responding to the new multinational tax anti-avoidance law

Clayton Utz

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Taxpayers subject to the new multinational anti-avoidance law should determine whether they restructure or stay firm.

AustraliaTax

Piotr Klank (Formerly With Clayton Utz)

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Key Points:

Taxpayers subject to the new multinational anti-avoidance law should determine whether they restructure or stay firm.

On 16 September 2015, the Government introduced legislation into Parliament to implement the new multinational anti-avoidance law (MAAL). This was announced as part of the 2015-16 Federal Budget and is targeted at multinationals which are considered to be avoiding the attribution and taxation of business profits in Australia. As follows we provide an overview of the MAAL, implications for taxpayers and some observations on how taxpayers may respond.

When will the MAAL apply?

The MAAL applies to "significant global entities" (member of a group with global annual revenue of $1bn or more). The Government has indicated that the MAAL is targeted at 30 large multinationals, although up to 100 companies may need to review their arrangements to make sure they comply with the law.

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