ATO perspective on international tax administration issues Jim Killaly Deputy Commissioner of Taxation Large Business and International

Administration issues - design issues Design principles to help administrability –Alignment with underlying business, market and economic realities Rules do not get in the way of the market Ensuring integrity of the policy - delivery of benefits and guarding against unintended advantages Facilitating streamlining and efficiency for all parties

Administration issues Design principles –Ability of the system to operate in real time for taxpayers and the ATO, especially in the context of self assessment

Administration issues - difficulties for taxpayer and ATO Definitional issues – Tainted sales – Tainted services – Residency issues for companies and expats

Administration issues - difficulties for taxpayer and ATO Record keeping concern – Substantiation in relation to active income test – Investments realised to avoid complexities of FIF attribution accounting

Administration issues - difficulties for taxpayer and ATO Design issues driving compliance costs – Interface between CFT and FIF measures – Interface between the CFC and FIF measures

Administration difficulties - Integrity issues Preserving the integrity of the listed/unlisted country distinction and listing approach –Section 47A Criteria for listing jurisdictions as comparably taxing

Administration difficulties - Integrity issues Criteria to quarantine measures to their intended scope Capital adequacy and appropriate accounting for branch structures

Administration issues Integrity issues Other administration issues –Skilling - both within and outside the ATO –Systems IT Returns