Following the notice of the DPT the relevant income year to increase assessment, the taxpayer will be able the taxpayer’s liability to income tax. to provide the Commissioner with Tax is payable on the increased tax further information disclosing reasons liability at the corporate tax rate. why the DPT assessment should be Penalties may apply in addition to the reduced (including to nil) during a increase in the amount of the tax period of review (generally liability. 12 months after notice is given of the If the taxpayer is dissatisfied with the DPT assessment). amended income tax assessment, the If, at the end of that period of review, taxpayer has 60 days to object to the the relevant taxpayer is dissatisfied assessment (in the manner set out in with the DPT assessment, or the Part IVC of the TAA 1953). amended DPT assessment, the taxpayer will have 30 days to challenge the assessment by making an appeal to the Federal Court. However, when considering the appeal, the Federal Court will generally be restricted to considering evidence that was provided to the Commissioner before the end of the period of review. Detailed explanation of new law Schedule 1 to this Exposure Draft Bill introduces the DPT aimed at ensuring that large multinationals are not able to avoid their Australian tax obligations by diverting profits generated in Australia offshore. The Schedule specifies: the circumstances in which the DPT applies to a taxpayer; the consequences that arise if the DPT applies to a taxpayer; and the DPT assessment and review process.
Following the notice of the DPT assessment, the taxpayer will be able to provide the Commissioner with further information disclosing reasons why the DPT assessment should be reduced (including to nil) during a period of review (generally 12 months after notice is given of the DPT assessment). If, at the end of that period of review, the relevant taxpayer is dissatisfied with the DPT assessment, or the amended DPT assessment, the taxpayer will have 30 days to challenge the assessment by making an appeal to the Federal Court. However, when considering the appeal, the Federal Court will generally be restricted to considering evidence that was provided to the Commissioner before the end of the period of review. the relevant income year to increase the taxpayer’s liability to income tax. Tax is payable on the increased tax liability at the corporate tax rate. Penalties may apply in addition to the increase in the amount of the tax liability. If the taxpayer is dissatisfied with the amended income tax assessment, the taxpayer has 60 days to object to the assessment (in the manner set out in Part IVC of the TAA 1953). Detailed explanation of new law Schedule 1 to this Exposure Draft Bill introduces the DPT aimed at ensuring that large multinationals are not able to avoid their Australian tax obligations by diverting profits generated in Australia offshore. The Schedule specifies: the circumstances in which the DPT applies to a taxpayer; the consequences that arise if the DPT applies to a taxpayer; and the DPT assessment and review process.
C2016-048_EXM_Exposure-Draft_Diverted_profitstax.docx