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October 2, 2018
2018-1944

Australian Treasury releases discussion paper on taxation of digital economy

On 2 October 2018, the Australian Treasury released a discussion paper on a fairer and more sustainable tax system for the digital economy in Australia, as announced in the 2018 Federal Budget.

The discussion paper does not provide any recommendations on taxation of digital activities. The paper includes detailed discussion on long-term solutions and interim solutions including the European Union1 and global consideration of a turnover tax on digital activities.

Treasury is seeking feedback by 30 November 2018 in relation to 13 discussion questions on areas including:

  • User-created value and value associated with intangibles
  • Changes to existing profit attribution rules
  • Changes to existing nexus rules
  • Options for broader reform
  • Design considerations for interim options

Endnote

1 See EY Global Tax Alert, ECOFIN discusses the Commission's proposals for taxation of digitalized activity, dated 11 September 2018.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Australia), International Tax Services, Sydney

  • Sean Monahan
    sean.monahan@au.ey.com
  • Tony Cooper
    tony.cooper@au.ey.com

Ernst & Young (Australia), International Tax Services, Melbourne

  • Peter Janetzki
    peter.janetzki@au.ey.com

Ernst & Young (Australia), International Tax Services, Perth

  • Andrew Nelson
    andrew.nelson@au.ey.com

Ernst & Young (Australia), Indirect Tax, Sydney

  • Greg Hill
    greg.hill@au.ey.com

Ernst & Young (Australia), Tax Policy Services, Sydney

  • Alf Capito
    alf.capito@au.ey.com

Ernst & Young (Australia), Tax Policy Services, Melbourne

  • Rolf Drohn
    rolf.drohn@au.ey.com
  • Fahd Khalil
    fahd.khalil@au.ey.com

Ernst & Young LLP, Australian Tax Desk, New York

  • David Burns
    david.burns1@ey.com

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ATTACHMENT

PDF version of Tax Alert 2018-1944

 

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