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Senate Economics Committee recommends passage of thin capitalisation reforms subject to amendments by Treasury
The Senate Economics Committee (Committee) has released its report (Report) outlining its recommendations in relation to the proposed reforms to the thin capitalisation regime, the new debt deduction creation rules and new tax transparency rules contained in the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023 (Bill). KWM made a number of submissions in respect of the Bill and appeared in front of the Committee to give evidence.
Thin capitalisation amendment Bill now released
Yesterday, the Federal Government released the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Bill 2023 (the Bill). The Bill, among other things, includes significant reforms to the thin capitalisation regime in Division 820 of the Income Tax Assessment Act 1997 (Cth) (1997 Act). The first version of these reforms was released in the March 2023 Exposure Draft (ED). Our earlier alert on the ED can be found here.
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