As part of a wide-ranging crackdown on multinational tax avoidance, the Australian Federal Government and the Australian Tax Office have introduced significant reforms to the country’s transfer pricing regulations. The Treasury Laws (Combating Multinational Tax Avoidance) Act 2017 (Cth) introduces specific measures which are part of a continuing reform effort directed at the transfer pricing regime. This Jones Day White Paper provides an overview of Australia’s transfer pricing laws, reviews recent key developments, and devotes considerable attention to defining and explaining the newly enacted Diverted Profits Tax.

In Brief—Corporate Tax Reforms -

1. The past 12 months have seen the introduction of significant legislative reform in respect of "tax avoidance". The focus has been on transfer pricing arrangements between related members of multinational corporate groups...