International Tax: Anti-avoidance (LAWS90017)

This subject is an advanced study of the rules under the Australian income tax legislation and tax treaties for dealing with international tax avoidance. The subject builds on the basic principles studied in International Tax: Principles and Structure. The subject will include a detailed study of Australia’s anti-deferral rules (CFCs and transferor trusts), including their interactions and reconciliations. Other major BEPS issues to be examined in the Australian context include interest deductibility, cross-border tax arbitrage in relation to financial transactions, treaty shopping and taxation of digital transactions. The subject will critically examine the policy underlying Australia’s rules and evaluate whether their technical implementation achieves their policy objectives. There will be consideration of the ongoing reform of the rules, including international developments through the BEPS process. BEPS has the potential to redefine the rules for dealing with international tax avoidance and students working in international tax need to be aware of how these rules are being developed and reformed both globally and in Australia.

Principal topics include:

• Detailed study of Australia’s CFC and transferor trust rules
• Multinational anti-avoidance Law
• Diverted profits tax
• Interest deductibility
• Cross-border tax arbitrage in financing transactions
• Taxation of digital transactions
• Treaty shopping
• Exchange of information.