On 29 November 2016, the Australian Treasury published draft legislation for consultation on the introduction of a Diverted Profits Tax (DPT) ({News-2016-05-06/P/2- previous coverage}). The DPT is a penalty tax imposed at a rate of 40% on profits that have been artificially diverted from Australia by multinationals. In particular, the DPT would apply to an entity (relevant taxpayer) if:
- It is reasonable to conclude that a scheme (or any part of a scheme) was carried out for a principal purpo…