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  • International transactions

    Failure to report or incorrect reporting of international transactions attract our attention.

    In this section

    Capital gains withholding
    From 1 July 2016, failure to withhold and pay the withholding on the disposal of some types of high-value real property and membership interests can attract our attention

    Characterisation of inbound foreign funds
    We review cross-border arrangements that mischaracterise inbound foreign funds provided by non-residents to Australian taxpayers when investing in Australian businesses or when repatriating foreign income as gifts or loans from related overseas entities

    Foreign residents and taxable Australian property
    Foreign residents disposing of taxable Australian property and failing to lodge returns advising of any gain or loss attract our attention

    Hybrid mismatch rules
    Hybrid mismatch arrangements that enable multinational companies from gaining an unfair competitive advantage by avoiding income tax or getting double tax benefits attract our attention

    Intangible assets
    We review international arrangements that incorrectly characterise either intangible assets, or activities or conditions connected with intangible assets

    International dealings schedule – non-lodgment
    We focus on tax returns and other information indicating that cross border transactions have occurred, indicating an international dealings schedule may be required but has not been lodged

    Non or under-reporting attributable foreign income
    We focus on Australian entities' failure to report or incorrect reporting of attributable foreign income

    Non-resident withholding tax – interest, dividend or royalty
    We focus on situations where interest, dividend or royalty withholding tax has not been withheld or paid or where it is not declared or reported correctly

    Significant global entities
    We focus on entities that meet the definition of a significant global entity but don't identify as one on their tax return or fail to lodge documents as required

    Country-by-country reporting entities
    We focus on entities that fail to declare their country-by-country reporting entity status on their tax returns or lodge documents as required

    Residency
    We focus on tax residency status changes relating to restructures, asset disposals, or events involving a significant increase in worldwide income

    Section 23AH non-assessable non-exempt income
    We focus on an Australian company’s overseas branch or permanent establishment income or deductions that have been incorrectly recognised

    Thin capitalisation
    We focus on Australian and foreign entities that have multinational investments and whose debts exceed 60% of the net value of their Australian investments

    Transfer pricing – related party dealings
    We focus on income or profits generated in Australia that are not being subjected to domestic tax due to non-arm's length conditions of international related party dealings

    Last modified: 09 May 2022QC 69437