ATO’s GILTI verdict may condemn multinationals to double taxation

Peter Madden & Denis Larkin discuss the ATO’s preliminary view on whether GILTI corresponds to the Australian CFC regime in Draft Taxation Determination TD 2019/D12.

Since 1 January 2019, Australia’s anti-hybrid mismatch rules have operated in certain circumstances to deny a deduction for a payment by an Australian taxpayer to a non-resident, where the payment is not included in the recipient’s taxable income in the foreign jurisdiction.  One exception is where the foreign recipient’s income is included in the assessable income of its third-country parent, under a rule that “corresponds” to Australia’s controlled foreign company (“CFC”) regime.In lat...

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Authors: Peter Madden, Denis Larkin

Published Date: 02 December 2019