Published on 13 Feb 2013
| Took place at Hyatt Regency Sanctuary Cove, Gold Coast, QLD
In this “post-GFC” world, ‘increased regulation and governance standards will change our working environments for many years to come’. Significantly, the scope, timing and potential impact of the still-evolving global and national regulatory reform are the key challenges cited by the vast majority of financial services organisations and are driving the re-shaping of the financial services industry in Australia.These challenges are further complicated by market, macro-economic and political volatility, and a constrained debate about taxation reform and an existing platform under siege.
This conference aimed to provide delegates with a colourful mix of plenary and breakout sessions that were focused on the critical taxation topics for the financial services industry.
Papers presented included:
Topical tax treaty issues for the financial sector
Attributing profits to permanent establishments (banking)
Policy responses to the investment manager regime (funds management)
Transfer pricing aspects of banking operations
Transfer pricing (funds management)
Emerging regional issues (funds management)
Is Australia becoming a sovereign tax risk?
The shifting Part IVA landscape
Australian Tax Office audits, risk identification, dispute
GST and RITCs on trustee services
Capital managment of financial institutions and the related tax issues
Transfer pricing law changes and the international dealing schedule
A series of ATO losses in Part IVA cases prompted the recent changes to Part IVA. What are the significant features of the changes and what new issues arise? The changes are intended to improve the “effectiveness” of Part IVA – but to what extent do the changes achieve that goal? How would the cases that the ATO lost be decided under the new rules?
Australian Taxation Office audits, risk identification, dispute
This presentation covers the risk differentiation framework, reportable tax positions, cooperative compliance agreements, dispute resolution and Australian Taxation Office policies for settling disputes.
Capital management of financial institutions and the related tax issues
These presentations cover:
Basel III changes:
overview and background – concept of regulatory capital; interaction with ratings capital; Basel III changes; how much additional capital banks globally will have to raise; and what banks around the world are doing
Basel III changes - focus on Basel III changes; capital adequacy under new APS 111; what the different categories of capital comprise of; key features to qualify as Additional Tier 1 Capital and Tier 2 Capital; deductions from capital; transitional arrangements
Topical tax issues facing banks and insurance companies about capital management:
Tier 1 capital issues in Australia – tax implications for the issuer and security holders including the implications for the issuer arising from Basel III non-viability clauses and the application of various anti-avoidance rules
Tier 1 capital issues undertaken by foreign branches of Australian banks – issues for the bank including the application of s 215-10
Tier 2 capital issues in Australia – tax implications for the issuer and security holders including application of the debt/equity rules.
There are radically divergent views emerging in relation to the interpretation of control and significant influence particularly in the context of minority shareholdings and shareholder arrangements. The flow-on impact upon provisions including Div 6C, debt/equity rules, interest deductibility, thin capitalisation and Div 250 is a contentious issue. This paper examines those issues and some other related recent developments in the context of project financing and consortium investment structures, in particular:
control, negative control, sufficient influence and connected entities in the context of Div 6C, Div 974-80 and thin capitalisation
thin capitalisation issues including related party debt rules and the ATO view of 820-39
changes to the definition of “limited recourse debt”.