Client Alert

Improvements needed for Government changes to Thin Capitalisation regime

By:
Michael Catterall,
Yan Wong,
Daniel Kave,
Avinesh Naidu,
Brett Curtis
17 Apr 20232 min read

On 16 March 2023 the Federal Government released for public consultation its Exposure Draft (ED) legislation which will apply mainly to multinationals with high interest deductions for income years commencing on or after 1 July 2023. 

Grant Thornton previously discussed the ED in summary and identified a number of areas of interest and concern. 
 
We have made submissions to Government which reflect our analysis and we believe include the views of our affected clients, and their bankers and lawyers.
 
In essence, our submissions aim to reasonably improve the ability of taxpayers to comply with the new rules whilst respecting the Government’s underlying policy intent. They also reflect common concerns across industry and we anticipate that a number of taxpayers and industry or professional bodies will have a similar view as to the impact of the proposed changes. 

We trust that the Government will give due consideration to the weight of public opinion in areas of common concern, and we welcome any consultation that is undertaken. 
 
Please contact us if you wish to discuss our submissions or would like further detail about the exposure draft.

TAGS
Authors
  • Michael Catterall
    Michael Catterall Michael has over 20 years’ experience in advising on taxation matters in both Australia and the UK. View Profile
  • Yan Wong
    Yan Wong Yan has 25 years’ corporate and international tax experience with a number of Big Four and Mid-Tier International Chartered Accounting firms. View Profile
  • Daniel Kave
    Daniel Kave Daniel, with vast experience, specialises in advising public companies and large private groups on complex tax matters including tax consolidations, M&A structuring, due diligence, corporate structuring, tax planning, capital gains tax, and international tax. He serves multinational organizations and advises businesses in retail, franchising, manufacturing, and mining. View Profile
  • Avinesh Naidu
    Avinesh Naidu Avinesh is an experienced Australian tax practitioner with over 15 years’ experience in chartered accounting firms and the commercial sector. View Profile
  • Brett Curtis
    Brett Curtis With over 30 years experience in the Australian, UK and New Zealand markets, Brett has expertise across a broad range of corporate and international taxation issues. View Profile

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