Australia’s Software-IP Taxation Ruling Is Too Broad, Group Says

An Australian draft ruling on taxation of payments for software and intellectual property takes an “overly broad” approach and creates the potential for double taxation of companies and more global tax disputes, an industry group said Thursday.

The Australian Taxation Office’s draft ruling creates significant uncertainty for engaging with the Australian market, and the ATO should consider foregoing it, the Information Technology Industry Council (ITI) said.

• The January draft ruling details the ATO’s view on when payments for software and IP count as royalties subject to withholding taxes. But the ruling conflicts with international tax commitments and norms, ...