24 February 2016 Australia to impose additional tax requirements on FIRB approvals for multinational entities' foreign investment into Australia The Australian Federal Government announced on February 22, that it will introduce additional requirements on new foreign investment applications made to the Foreign Investment Review Board (FIRB) to ensure multinationals investing into Australia pay tax on their Australian earnings. The additional requirements on foreign investors will add to the existing national interest test, and comprise eight specific standard conditions, broadly encompassing: i) a requirement for investors to comply with Australian taxation law; and ii) Australian Taxation Office (ATO) directions to provide information in relation to the investment and advise the ATO if investors enter into any transactions with nonresidents to which transfer pricing or anti avoidance measures of Australian tax law may potentially apply. Additional conditions may also be imposed if a significant risk is identified. A Tax Alert prepared by Ernst & Young's Australian Tax Desk in New York, and attached below, provides additional details. Document ID: 2016-0372 |
