Tag Archives: BEPS

ILN Today Post

Potential Direct Tax Implications for Digital Economy

Multinational companies such as Google, Facebook, Airbnb etc., engaged in providing digital services in different countries, without any physical presence, are likely to be adversely impacted by the changing international tax regime. The tax challenges arising from digitalisation of the economy were identified as one of the main areas of focus of the Base Erosion and Profit Sharing (BEPS) Action Plan, leading to the 2015 BEPS Action 1 Report on ‘Addressing the Tax Challenges of the Digital Economy’. Thereafter, the focus of the countries has been to draw up a conclusive plan for the governments’ right to tax multinationals, through the Organisation for Economic Cooperation and Development (OECD), which is currently working on releasing a methodology for such taxation, by 2020.

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Talking Tax – Issue 144

Phoenixing labour hire operator sentenced to jail in WA
In brief

A labour hire business operator who fraudulently obtained more than $890,000 through illegal phoenix activity (involving business debts, GST and PAYG obligations) has been jailed for five years and four months and ordered to repay the money.

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Talking Tax – Issue 86

Case law

AAT rejects Taxpayer’s claim for input tax credits

In GH1 Pty Ltd (in Liquidation) v FCT [2017] AATA 1063, the Administrative Appeals Tribunal affirmed the Commissioner of Taxation’s decision to disallow input tax credits (ITCs) totalling $817,207 for bulk earthwork services provided in relation to a development project.

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