Transfer pricing Corporate tax Miscellaneous

Fighting IP migration with tax incentives - An Australian patent box regime

Source: The Tax Specialist Journal Article

Published Date: 1 Aug 2014


As a result of difficulties associated with arm’s length valuation of intangible assets, MNEs tend to distort intellectual property location in favour of low-tax jurisdictions. A number of nations have implemented so-called “patent box” incentives to combat this behaviour and to attract and retain IP within their taxing jurisdictions. While such measures may be effective in attracting IP, there are significant questions as to whether they can achieve a net benefit for the taxing nation over the long term. In addition, some entities have labelled these measures a “harmful tax practice”. Given this response, the Australian Government may be inclined to delay consideration of such a proposal. However, such inaction could be to the detriment of the Australian economy and corporate tax base.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Transfer pricing Corporate tax Miscellaneous 2014

Share this page