Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 (170 of 2015)

Schedule 2   Multinational anti-avoidance

Income Tax Assessment Act 1936

1   Subsection 177A(1)

Insert:

associate has the same meaning as in Part X.

Australian customer , of a foreign entity, means another entity who:

(a) is in Australia, or is an Australian entity; and

(b) if the foreign entity is a member of a global group - is not a member of that global group.

Australian entity has the same meaning as in Part X.

Australian permanent establishment of an entity means:

(a) if:

(i) the entity is a resident in a country that has entered into an international tax agreement (within the meaning of subsection 995-1(1) of the Income Tax Assessment Act 1997) with Australia; and

(ii) that agreement contains a permanent establishment article (within the meaning of that subsection);

a permanent establishment (within the meaning of that agreement) in Australia; or

(b) otherwise - a permanent establishment of the person in Australia.

entity has the meaning given by section 960-100 of the Income Tax Assessment Act 1997.

foreign entity has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

foreign law has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.

global group means a group of entities, at least one of which is a foreign entity, that are consolidated for accounting purposes as a single group.

significant global entity has the meaning given by section 960-555 of the Income Tax Assessment Act 1997.

supply has the meaning given by section 9-10 of the GST Act, but does not include any of the following, or of any combination of 2 or more of the following:

(a) a supply of an equity interest in an entity;

(b) a supply of a debt interest in an entity;

(c) a supply of an option for:

(i) a supply of a kind referred to in paragraph (a) or (b); or

(ii) any combination of 2 or more such supplies.