On 3 May 2016, the Australian Treasury published a consultation paper on the implementation of the Diverted Profits Tax (DPT) announced in the 2016-17 Budget ({News-2016-05-04/P/2- previous coverage}). Key aspects of the diverted profits tax from the consultation paper include that it will:
- Impose a penalty tax rate of 40% on profits transferred offshore through related party transactions with insufficient economic substance that reduce the tax paid on the profits generated in Australia by m…