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Advice under development – international issues

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

Last updated 27 March 2024

[3708] Forex realisation event 4

Title

Draft Taxation Determination
Income tax: does forex realisation event 4 happen to the debtor under subsection 775-5(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, Office of the Chief Tax Counsel

Phone: (08) 9268 5353

Erin.Gordon@ato.gov.au

[4116] Thin capitalisation

Title

Multinational Tax Integrity – strengthening Australia’s interest limitation (thin capitalisation) rules

Purpose

Public consultation on Treasury Laws Amendment (Making Multinationals Pay Their Fair Share-Integrity and Transparency) Bill 2023 has recently concluded.

We are proposing to provide guidance setting out the Commissioner’s views on, and approach to, key aspects of the new thin capitalisation rules.

Stakeholder feedback is sought on potential topics, prioritisation and the form of any potential public advice and guidance.

It is intended that only the most important issues arising from the new law will be addressed through the preparation of early ATO public advice and guidance.

Expected completion date

Post enactment (to be determined)

Contact

Stephen Dodshon, Public Groups

Stephen.Dodshon@ato.gov.au

Erin Gordon, Office of the Chief Tax Counsel

Erin.Gordon@ato.gov.au

For more information, see Consultation matter [202401]

[4149] OECD hybrid mismatch rules [updated]

Title

Final Taxation Determination
Income tax: application of certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions

Purpose

The final Determination will set out the Commissioner’s view on certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions in Division 832 of the Income Tax Assessment Act 1997.

Comments

TD 2024/D1 Income tax:  hybrid mismatch rules − application of certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions published on 13 March 2024. Comments period closes 19 April 2024.

Expected completion date

June 2024

Contact

Hybridmismatches@ato.gov.au

 

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