Legislation to allow Australia to ratify the OECD’s multilateral tax treaty convention has been passed by parliament. The treaty is aimed at curbing profit shifting and tax base erosion, and tax experts claim it should clamp down on the abuse of tax treaties and help to stop double taxation. David Watkins of Deloitte says the OECD convention will be of assistance to tax authorities, however, it is “mainly bad news” for the business sector. From The AFR:
A “quick fix” to Australia’s tax laws designed to ensure profits are taxed at the source of economic value has passed Parliament, shoring up defences on avoidance and treaty shopping…
