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  • Multilateral Instrument – Australia-New Zealand joint approach now available

    We have published our administrative approach with New Zealand Inland Revenue in relation to the new treaty tie-breaker rule for non-individual taxpayers. This rule was introduced by Article 4(1) of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, also known as the Multilateral Instrument (MLI).

    This risk-based approach seeks to provide certainty and reduce compliance costs for taxpayers that satisfy the eligibility criteria. It allows us to prioritise our compliance resources to deal with dual residency matters that may present material revenue consequences or higher risk of tax avoidance. This approach will only be implemented between Australia and New Zealand at this stage.

    For all other taxpayers that are impacted by Article 4(1) of the MLI, you will need to apply for a competent authority determination regarding your tax residency, for the purposes of the relevant treaty.

    The government is committed to adopting measures to address base erosion and profit shifting risks and ensuring a better functioning international tax system. We will continue to target tax avoidance behaviours and arrangements.

    Taxpayers who want to clarify how their arrangements are affected by the MLI can contact us for advice.

    See also:

    Last modified: 03 Jun 2019QC 59167