Tax System

A Bill to implement the OECD hybrid mismatch rules designed to strengthen the integrity of the tax system has been introduced into parliament.

The Treasury Laws Amendment (Tax Integrity And Other Measures No 2) Bill 2018amends the ITAA 1997 to implement part of the OECD hybrid mismatch rules by preventing entities that are liable to income tax in Australia from being able to avoid income taxation, or obtain a double non-taxation benefit, by exploiting differences between the tax treatment of entities and instruments across different countries.

The Bill also contains several measures announced in the 2018/19 Federal Budget including strengthening the film producer offset, providing tax exemptions to support the lnternational Cricket Council (ICC) to hold the World Twenty20 in Australia, and updating the registered list of deductible gift recipients (DGR).