Australian Parliament Passes Legislation for Diverted Profits Tax, Increased Penalties for SGEs, and Latest OECD Transfer Pricing Guidance

On 27 March 2017, the Australian Senate passed two pieces of BEPS-related legislation after being passed in the House of Representatives:

• The Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 (TLA Bill); and
• The Diverted Profits Tax Bill 2017 (DPT Bill).

Most of the measures are included in the TLA Bill, while the specific rate of the Diverted Profits Tax is included in the DPT Bill.

Diverted Profits Tax

The Diverted Profits Tax (DPT) is introduced at a rate of…