The introduction of the non-arm’s length expenditure (NALE) rules, and the ATO’s interpretation of these rules, as published in the recently finalised Law Companion Ruling LCR 2021/2, will have far reaching and, it is submitted, significant harmful consequences; it is difficult to imagine that such outcomes were intended. These rules apply with effect from 1 July 2018, including with respect to income derived as a result of an arrangement entered into prior to that date.
The Joint Bodies
(Chartered Accountants Australia and New Zealand, Corporate Tax Association, CPA Australia, Institute of Public Accountants, Law Council of Australia and The Tax Institute)
Minister for Superannuation, Financial Services and the Digital Economy
Director, The Tax Institute
02 8223 0005