01 Jul 13 Improving the Offshore Banking Unit Regime
On 28 June 2013, the Assistant Treasurer released for public consultation a discussion paper entitled Improving the Offshore Banking Unit Regime. This follows the 2013-2014 Budget announcement of changes to the Offshore Banking Unit (OBU) regime within the broader context of a package of measures aimed at protecting the integrity of the corporate tax system. These changes, which will apply to income earned on or after 1 October 2013, will seek to resolve integrity issues with the current regime, and also better target genuine mobile activities.
The Budget announcement outlined changes to the OBU regime to:
- treat dealings with related parties, including the transfer of transactions between the OBU and the domestic bank, as ineligible for OBU treatment
- treat transactions between OBUs, including between unrelated OBUs, as ineligible for OBU treatment, and
- refine the current list of eligible OBU activities.
Submissions close on Friday, 19 July 2013.