copy the linklink copied!Australia
Australia has met all aspects of the terms of reference (ToR) for the calendar year 2018 (year in review) and no recommendations are made.
In the prior year report, Australia did not receive any recommendations.
Australia can legally issue four types of rulings within the scope of the transparency framework. In practice, Australia has issued rulings within the scope of the transparency framework as follows:1
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202 past rulings;
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For the period 1 April 2016 - 31 December 2016: 15 future rulings;
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For the calendar year 2017: 13 future rulings, and
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For the year in review: 10 future rulings.
Australia publishes edited anonymised versions of private rulings on the ATO Legal Database (excluding the unilateral APAs which are not published due to privacy reasons).2
Peer input was received from five jurisdictions in respect of the exchanges of information on rulings received from Australia. The input was generally positive, noting that information was complete, in a correct format and almost all received in a timely manner.
copy the linklink copied!Introduction
This peer review covers Australia’s implementation of the BEPS Action 5 transparency framework for the year 2018. The report has four parts, each relating to a key part of the ToR. Each part is discussed in turn. A summary of recommendations is included at the end of this report.
copy the linklink copied!A. The information gathering process
Australia can legally issue the four following types of rulings within the scope of the transparency framework: (i) rulings related to preferential regimes;3 (ii) cross-border unilateral advance pricing arrangements (APAs) and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; (iii) permanent establishment rulings; and (iv) related party conduit rulings.
Past rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1, I.4.2.2)
For Australia, past rulings are any tax rulings within scope that are issued either: (i) on or after 1 January 2014 but before 1 April 2016; or (ii) on or after 1 January 2010 but before 1 January 2014, provided they were still in effect as at 1 January 2014.
In the prior years’ peer review reports, it was determined that Australia’s undertakings to identify past rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. Australia’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
Future rulings (ToR I.4.1.1, I.4.1.2, I.4.2.1)
For Australia, future rulings are any tax rulings within scope that are issued on or after 1 April 2016.
In the prior years’ peer review reports, it was determined that Australia’s undertakings to identify future rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard. Australia’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
Review and supervision (ToR I.4.3)
In the prior years’ peer review reports, it was determined that the Australia’s review and supervision mechanism was sufficient to meet the minimum standard. The Australia’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
copy the linklink copied!B. The exchange of information
Legal basis for spontaneous exchange of information (ToR II.5.1, II.5.2)
Australia has the necessary domestic legal basis to exchange information spontaneously. Australia notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.
Australia is a party to international agreements permitting spontaneous exchange of information, including (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011) (“the Convention”) and (ii) double tax agreements in force with 43 jurisdictions.4
Completion and exchange of templates (ToR II.5.3, II.5.4, II.5.5, II.5.6, II.5.7)
In the prior years’ peer review reports, it was determined that Australia’s completion and exchange of templates were sufficient to meet the minimum standard. Australia’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.
For the year in review, the timeliness of exchanges is as follows:
Conclusion on section B
Australia has the necessary legal basis for spontaneous exchange of information and a process for completing the templates in a timely way. Australia has completed exchanges in a timely manner generally, with some minor delays due to minor administrative oversight or the recipient jurisdiction not having confirmed whether there are systems in place to receive exchanges. Australia has met all of the ToR for the exchange of information process and no recommendations are made.
copy the linklink copied!C. Statistics (ToR IV)
The statistics for the year in review are as follows:
copy the linklink copied!D. Matters related to intellectual property regimes (ToR I.4.1.3)
Australia does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[5]) were imposed.
Notes
← 1. In the prior years’ peer review reports, Australia reported that it had 208 past rulings, nine future rulings for the period 1 April 2016 – 31 December 2016, and 22 future rulings for the calendar year 2017. However, upon subsequent review, Australia has provided revised number of rulings for both past and future rulings due to a record-keeping error. This clerical error with regard to statistics does not impact the correct identification and exchange of the relevant rulings. This issue has been rectified, and all rulings in scope of the transparency framework will now be recorded on one register.
← 2. Available at https://www.ato.gov.au/law/#Law.
← 3. With respect to the following preferential regimes: 1) Offshore banking unit regime and 2) Conduit foreign income regime.
← 4. Parties to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Australia also has bilateral agreements with Argentina, Austria, Belgium, Canada, Chile, China (People’s Republic of), Czech Republic, Denmark, Fiji, Finland, France, Germany, Hungary, India, Indonesia, Ireland, Italy, Japan, Kiribati, Korea, Malaysia, Malta, Mexico, Netherlands, New Zealand, Norway, Papua New Guinea, Philippines, Poland, Romania, Russia, Singapore, Slovak Republic, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Chinese Taipei, Thailand, Turkey, United Kingdom, United States and Viet Nam.
Metadata, Legal and Rights
https://doi.org/10.1787/7cc5b1a2-en
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