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ATO eyes foreign income disguised as gifts, loans
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ATO eyes foreign income disguised as gifts, loans
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ATO has been issuing various TP guidance
It is increasingly important to proactively address potential transfer pricing (TP) issues and related tax risks associated with the development, enhancement, maintenance, protection and exploitation (DEMPE) of intangible assets in the global economic environment.
While recent Australian cases, including
Tech Mahindra Limited v. Federal Commissioner of Taxation (2015) TR 775, have principally focused on, among other things, the distinction between royalties and either payments for services rendered or payments for the assignment of intellectual property, the ATO has been more rigorously pursuing and issuing guidelines on the TP, withholding tax and related consequences of a broad range of dealings with intangible assets.
The ATO deepens its focus on intangible assets and related TP matters
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account-keeping fees for an account held for investment purposes
interest charged on money borrowed to buy shares and other related investments from which you derive assessable interest or dividend income
ongoing management fees or retainers and amounts paid for advice relating to changes in the mix of investment
a portion of other costs if they were incurred in managing your investments, such as some travel expenses, investment journals and borrowing costs.
If you attend an investment seminar, you are only entitled to claim a deduction for the portion of travel expenses relating to some investment income activities.
Capital Gains Tax