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| Treaty news A number of treaties have been updated and tax co-operation agreements entered into, many with effect from 1st January 2009. Others may have not come in to full effect just yet but their implementation is imminent. In recent times the changes that have been introduced are such that, any business engaging in cross border activity must ensure that existing arrangements are structured to ensure compliance and maximum efficiency.
1. New tax treaty with Japan enters into force 2. Revised tax treaty with South Africa enters into force 4. Australia-Isle of Man Tax Information Exchange Agreement |
| Important information about PAYG installment reduction for small business To help small businesses weather the global financial crisis, the Australian Government recently announced that it would reduce by 20% the quarterly pay as you go (PAYG) installment due for the December 2008 quarter. For some small businesses this installment was due 21 January 2009 while for the balance of small businesses this installment is due on 28 February 2009. (Note that as the date falls on a long weekend in some states, the lodgment and payment deadline has been extended to 3 March 2009 Australia wide). |
| Tax Office reviews aggressive profit shifting of business losses into Australia Tax Commissioner issues a taxpayer alert warning multinationals that the Tax Office will be closely examining claims for foreign business losses shifted to Australia. This is of particular relevance in the current economic climate “to aggressively transfer existing or unrealized losses from the foreign operations of another business into Australia.“ The ATO have issued alerts concerning uncommercial property arrangements that try to obtain unintended GST benefits. The issues are:
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