Show download pdf controls
  • Advice under development – international issues

    We are developing advice and guidance on the following international issues.

    [3708] Forex realisation event 4

    Title
    Draft Taxation Determination
    Income tax: does forex realisation event 4 happen to the debtor under subsection 775-55(1) of the Income Tax Assessment Act 1997 on repayment of a loan taken out prior to the effective date of a choice to use the applicable functional currency and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency?

    Purpose
    The draft Determination will set out proposed clarification on whether forex realisation event 4 happens on repayment of a loan obligation incurred prior to the effective date of an applicable functional currency choice and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency.

    Expected completion
    To be advised

    Contact
    Erin Gordon, Tax Counsel Network
    Phone: (08) 9268 5353
    Erin.Gordon@ato.gov.au

    [3932] Taxing US and UK resident financial institutions under US and UK taxation conventions

    Title
    Draft Addendum to Taxation Ruling TR 2005/5
    Income tax: ascertaining the right to tax United States (US) and United Kingdom (UK) resident financial institutions under the US and the UK Taxation Conventions in respect of interest income arising in Australia

    Purpose
    The draft Addendum will clarify certain aspects of the second limb of the definition of 'financial institution' which is used in Australia's double-tax conventions with the US and the UK.

    Expected completion
    November 2021

    Comments
    The draft consolidation for TR 2005/5 published on 28 November 2018. Comments and issues raised during consultation and from subsequent casework have been considered, with a draft Addendum to be issued for further consultation.

    Contact
    James Campbell, Public Groups and International
    Phone: (02) 9374 8867
    James.Campbell@ato.gov.au

    [3950] OECD hybrid mismatch rules

    Title
    Final Taxation Determination
    OECD hybrid mismatch rules – foreign law interactions Income tax: is section 951A of the US Internal Revenue Code a provision of a law of a foreign country that corresponds to sections 456 or 457 of the Income Tax Assessment Act 1936 for the purpose of subsection 832-130(5) of the Income Tax Assessment Act 1997?

    Expected completion
    Early 2022

    Comments
    Draft TD 2019/D12 published on 21 November 2019. Feedback received during consultation is being further considered.

    Contact
    HybridMismatches@ato.gov.au

    Title
    Hybrid mismatch rules – subject to foreign income tax

    Purpose
    This guidance will address the Commissioner’s view on key aspects of the ‘subject to foreign income tax’ definition, with particular focus on treatment of intra-group payments between members of the same US consolidated group.

    Expected completion date
    Early 2022

    Contact
    Hybridmismatches@ato.gov.au

    Title
    Final Practical Compliance Guideline
    Hybrid mismatch rule – ATO's compliance approach

    Purpose
    The final Guideline will set out the Commissioner’s compliance approach on the imported mismatch rule in Subdivision 832-H of the Income Tax Assessment Act 1997.

    Comments
    Draft PCG 2021/D3 published on 24 April 2021. Comments period closed on 21 May 2021.

    Expected completion date
    November 2021

    Contact
    Hybridmismatches@ato.gov.au

    [4006] Intangibles arrangements

    Title
    Final Practical Compliance Guideline
    Intangibles arrangements

    Purpose
    The final Guideline will set out the ATO's compliance approach to international arrangements connected with the development, enhancement, maintenance, protection and exploitation of intangible assets, specifically, the potential application of the transfer pricing, general anti-avoidance rule (GAAR) and the diverted profits tax (DPT) provisions. The capital gains tax and capital allowances provisions will also be discussed in this Guideline where these may be considered alongside, or relevant to, the ATO’s transfer pricing, GAAR or DPT risk assessment.

    Expected completion
    Early 2022

    Comments
    Draft PCG 2021/D4 published on 19 May 2021. Comments period closed on 16 July 2021. Comments are being considered.

    Contact
    IntangiblesArrangements@ato.gov.au

    See also

    Last modified: 04 Nov 2021QC 50317