Miscellaneous 2020

Will the covered sovereign entity please stand up?

Source: The Tax Specialist Journal Article

Published Date: 1 Feb 2020


The parameters of the doctrine of sovereign immunity " the principle on which one state can be considered immune from the territorial jurisdiction of another " have been difficult to define in the Australian income tax context. In what circumstances should a foreign government be exempt from Australian tax on the income it derives from an Australian investment? At what point does it become reasonable for the Australian Government to impose tax on such income? Effective from 1 July 2019, we now have a codified set of rules dealing with the extent to which a state can rely on the doctrine of sovereign immunity for Australian income tax purposes. This article explores the doctrine of sovereign immunity as it has evolved in Australia for income tax purposes, and the policy shift behind the recent codification of those rules.

Author Profile
Louisa Wu

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  • Published By: Louisa Wu
  • Published On:1 Feb 2020

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Miscellaneous 2020

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