Federal Budget 2013
The announcement by the Government that the much delayed reforms to Australia’s Controlled Foreign Company (CFC) regime have yet again been deferred will further anger big business and Australian companies going offshore, according to leading advisory firm Grant Thornton.
"The amendments to simplify and stream line the anti-deferral measures in respect of income derived offshore by Australian businesses were first announced in the 2009-10 budget," said Brett Curtis, Tax Partner at Grant Thornton Australia.
"Various discussion documents were released and public consultation was called for. Yet the reforms remain up in the air."
"The delay of these measures provides continued uncertainty for Australian companies doing business offshore. Tax payers are setting up offshore operations without knowing how such operating structures may be taxed in the future."
"Combined with the constant tinkering of the Australian tax system and the other announced measures to international taxation and transfer pricing, Australian businesses are required to continually evaluate their offshore structures and whether they are the most efficient from a tax and regulatory perspective"
"At a time when the Government needs to increase revenues it appears to be providing greater uncertainty and obstacles for Australian businesses that are looking to offshore markets to increase growth."
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