Australian Tax Office Seeks Comment on Interest-Limitation Rules

The Australian Taxation Office has begun a new consultation on “key aspects” of proposed new thin-capitalization rules that would limit the amount of interest payments that multinational companies can deduct.

The ATO said it is soliciting feedback from taxpayers, industry and professional groups, and government advisory bodies on guidance topics, prioritization, and the form of any potential public advice and guidance.

• Any guidance would address “only the most important issues arising from the new law,” the ATO said.
• The proposed thin-capitalization rules are pending as a part of a bill in Parliament aimed at curbing multinational tax avoidance. Australia’s Treasury ...