Commissioner threatens to issue higher tax bills
The Commissioner of Taxation has, in a recent Australian Senate Estimates hearing, expressed frustration that companies potentially subject to Australia's cross-border anti-avoidance laws (including the new Multinational Anti-Avoidance Law or MAAL) which have documents offshore, outside the reach of his access powers, are not providing him with relevant information – either at all, or in what he regards as a timely manner. He has threatened to raise assessments, which would force these companies to object against those assessments and provide further information if they wish to prove the assessments are excessive. Although affected non resident entities may not have assets in Australia, this does not mean the Commissioner will be unable to enforce the tax debts which would arise on such assessments. Partner Toby Knight (view CV) and Senior Associate Igor Golshtein discuss the implications for potentially affected companies, focusing particularly on those for overseas entities at which the new MAAL is targeted.