Coping with the cross-border attack: The MAAL and more

Published on 01 Mar 17 by "THE TAX SPECIALIST" JOURNAL ARTICLE

Australia’s multinational anti-avoidance law (MAAL) was introduced to “counter the erosion of the Australian tax base by multinational entities”. This article explores the nature of Australia’s attack on the cross-border transactions of multinational enterprises (MNEs) under the MAAL. It explains the key relevant statutory provisions of the MAAL and where this law sits in relation to the broader international tax framework which the government has committed to shape. It explores how MNEs may be similarly impacted by the new diverted profits tax measures, which was recently introduced into parliament and will commence on 1 July 2017. It describes a field of study which can help explain how and why the ATO has announced that it is reviewing many more taxpayers than were initially described by the government as targets of the law.

Author profiles

Peter Collins FTI

Peter Collins, FTI, is a Partner at PwC with 25 years experience as a specialist in global tax, assisting foreign investors structuring their Australian investments and Australian corporates expanding offshore. He works with the firm’s global tax network to develop solutions for clients and is a member of the International Tax executive, which allows him to provide a unique global perspective. He is a consultant to Treasury in relation to tax reform in the areas of international tax and transfer pricing, including the MAAL/DPT and a member of the Treasury’s BEPS Tax Advisory Group. Peter was heavily involved in the rewrite of the Australian transfer pricing rules; he appeared before the Senate Estimates Committee to object to the retrospective application of those rules to US companies. He represented PwC before the Senate inquiry in relation to corporate tax avoidance by multinational companies. - Current at 01 November 2018

More by Peter COLLINS

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• Alternative assets insights: Glencore v FCT: Transfer pricing decision - 01-December-2019
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• BEPS for banks and insurance companies paper - 08-February-2017
• The new reality of international tax paper - 26-October-2016
• BEPS - Topics of specific interest to financial services paper - 18-February-2015
• Government reforms to Australia’s international tax system paper - 05-August-2014
• International tax: The BEPS movement paper - 14-November-2013
• The smoke and mirrors around the "stage one" transfer pricing reforms - 01-June-2012
• International tax including MECs paper - 14-October-2010
• MEC groups and evolving international tax issues - 01-August-2007
• Capital management issues: returns and buybacks; hybrid securities; IFRS. - 13-December-2005
• Treasury reviews offshore portfolio investments - 09-May-2005
• Structuring ofshore portfolio investments: be aware of treasury review - 22-April-2005
• Costello announces three year transition for accounting standards - 14-February-2005
• Tax Relief for Demergers of Corporate Groups seminar paper - 16-May-2003
• Thin capitalisation - 14-March-2002
• Thin capitalisation tax reforms: ready for the next tidal wave? - 01-June-2001
• Planning and Structuring Issues for the New Business Tax System - 08-September-2000
• A hire duty under chap.6 of the new Duties Act - 01-September-1998

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