This consultation process has now been completed. Submissions available
Date
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Consultation Type
Draft Legislation
Key Documents
On 6 November 2013, the Government announced that it would proceed with certain reforms to the Offshore Banking Unit (OBU) regime.These reforms address a number of integrity concerns with the existing regime while ensuring the OBU regime targets mobile financial sector activity.
The proposed amendments in the draft Bill:
- limit the availability of the OBU concession in certain circumstances where it could otherwise be used to convert ineligible activity into eligible activity by trading in a subsidiary;
- codify the ‘choice principle’ to remove uncertainty for taxpayers;
- introduce a new method of allocating certain expenses between the operations of a taxpayer’s domestic banking unit and the OBU;
- modernise the list of eligible activities; and
- treat internal financial dealings (for example, between an Australian bank and its offshore branch) as if they were on an arm’s length basis.