Multinational Anti-Avoidance Law (MAAL) and Pt IVA — a Critical Analysis of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 (Cth) and Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 (Cth) and Comparison with General Anti-Avoidance Provisions

Australian Tax Law Bulletin, July 2017

U. of Adelaide Law Research Paper No. 2018-70

8 Pages Posted: 18 Jun 2018

Date Written: June 17, 2018

Abstract

The government recently introduced the Multinational Anti-Avoidance Law (MAAL) as part of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 (Cth), the legislation having taken effect as of 11 December 2015. The intention of this legislation is to moderate the erosion of the Australian tax base by preventing multinationals from utilising artificial or contrived arrangements to avoid the attribution of business profits to Australian subsidiaries. This paper was originally published as a conference paper earlier this year.1 Since publication, the government has further introduced a diverted profits tax (DPT) as part of the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 (Cth),2 its provisions taking effect progressively as of 1 July 2017. At the time of writing there is currently no case law regarding the new legislation; and what impact the new legislation has on strengthening the tax base remains to be seen. This paper will expand on the conference paper; including a critical analysis of the Diverted Profits Tax Act 2017 (Cth) (DPT Act) in comparison with the MAAL and general anti-avoidance provisions. This paper will compare the substance of the MAAL and DPT Act to consider if they operate effectively together and as standalone provisions or cumulatively and in conjunction with the general anti-avoidance provisions.3

1“Multinational anti avoidance law (MAAL) & Part IVA” paper presented at Tax Institute of Australia Annual Tax CPD, Adelaide University (24 February 2017). 2Royal Assent was received on 4 April 2017. 3Income Tax Assessment Act 1936 (Cth), Pt IVA.

Keywords: Multinational, Tax, Avoidance

JEL Classification: k34

Suggested Citation

Bruce, Max, Multinational Anti-Avoidance Law (MAAL) and Pt IVA — a Critical Analysis of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 (Cth) and Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 (Cth) and Comparison with General Anti-Avoidance Provisions (June 17, 2018). Australian Tax Law Bulletin, July 2017; U. of Adelaide Law Research Paper No. 2018-70. Available at SSRN: https://ssrn.com/abstract=3197953

Max Bruce (Contact Author)

University of Adelaide ( email )

No 233 North Terrace, School of Commerce
Adelaide, South Australia 5005
Australia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
111
Abstract Views
844
rank
258,620
PlumX Metrics