The attribution of income, losses and outgoings to foreign permanent establishments of Australian banks paper

Published on 13 Feb 13 by NATIONAL DIVISION, THE TAX INSTITUTE

This paper covers:

Australian outbound perspectives:

• the domestic law framework: s 23AH, FITO rules and withholding tax rules
• relevance of tax treaties and OECD guidelines to the attribution of profits to a foreign branch
• the effect of intra-entity dealings (Max Factor decision, ATO rulings, treatment of intra-entity risk transfers)
• Australian implications of capital attribution rules in foreign jurisdictions
• what difference would adopting a functionally separate entity approach make?

Australian inbound perspectives:

• the tax classification of the Australian branch
• the recognition of intra-entity dealings
• interaction between domestic rules and treaties
• potential interaction with other rules, especially thin capitalisation and withholding tax
• potential alternatives and approaches adopted in other jurisdictions.

Author profile

Ian Fullerton CTA

Ian is a Barrister, Ground Floor Wentworth Chambers. - Current at 29 October 2019

More by Ian FULLERTON

• Entitlement to income of a trust paper - 16-June-2020
• The reconstruction provision in the Australian transfer pricing rules - 01-October-2019
• Trusts - Australian trust law in the context of Australian income tax law: Some perennial issues and some topical issues paper - 14-March-2018
• The reconstruction provision in the new Australian transfer pricing rules paper - 18-February-2015
• The attribution of profits to permanent establishments paper - 19-February-2014

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