The Board of Taxation (the Board) released its position paper today on the foreign source income anti-tax-deferral (attribution) rules.
This position paper follows on from the Board’s extensive consultation and discussion paper of 25 May 2007.
Australia’s attribution rules, the controlled foreign company (CFC) rules, foreign investment fund (FIF) rules, transferor trust rules and the deemed present entitlement rules, are notoriously complex and impose high compliance costs on Australian business.
The Board has examined whether the rules strike an appropriate balance between maintaining the integrity of the tax system and unnecessarily inhibiting Australians from competing in the global economy, and has identified ways to reduce complexity and compliance costs.
“The Government is keen to advance reforms to Australia’s tax laws to improve the competitiveness of Australian business, cut red tape and to help make Australia an Asian financial hub,” Assistant Treasurer Chris Bowen said.
“The Government therefore welcomes the release of the Board’s position paper and will closely examine the Board’s final recommendations when they are released later in the year.”
The position paper will form the basis of further consultations with industry to allow the Board to formulate final recommendations for the Government to consider.
The Board also released today its 2006-07 Annual report which outlines the Board’s activities in 2006-07 and the year ahead.
For further information, see the Board’s website at www.taxboard.gov.au