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 and will include an advanced 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, and abuse of tax treaties (including treaty shopping). 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 work of the Inclusive Framework. BEPS is redefining the rules for countering 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:

• Australia’s CFC and transferor trust rules
• Multinational anti-avoidance law (MAAL)
• Diverted profits tax (DPT)
• Thin capitalisation rules
• Hybrid mismatch rules (tax arbitrage)
• Treaty-related anti-avoidance rules
• Exchange of information.