The ATO welcomes the announcement from SGSP (Australia) Assets Pty Ltd (SGSPAA) (trading as Jemena) to the Singapore Exchange. The settlement shows the ATO’s continued commitment to maintaining the integrity of the tax system by working with multinationals to ensure they are complying with their tax obligations.
The settlement resolves the dispute in relation to SGSPAA’s $800 million convertible instruments entered in 2015. Importantly, it was agreed that the convertible instruments will be converted into fully paid ordinary shares, eliminating future interest payments and deductions. This is in addition to the payment of $50.8 million for past years.
Deputy Commissioner Rebecca Saint said this settlement highlights the relentless focus of the Tax Avoidance Taskforce to ensure profits of multinationals are appropriately taxed in Australia.
‘The Tax Avoidance Taskforce continues to have a sharp focus on related party debt arrangements. We estimate that the Taskforce has removed around $45 billion of past and future interest deductions from the tax system. This results in billions of dollars of additional tax being collected in Australia.’
‘From a tax perspective, we’re putting integrity of the system first and ensuring businesses are on a level playing field.’
‘ATO intervention with large business and multinationals has prompted taxpayers to commit to long-term behavioural changes including restructuring and resolving longstanding disputes. It has resulted in taxpayers shifting their tax position and increasing their revenues being taxable in Australia,’ Ms Saint said.
Since the Tax Avoidance Taskforce commenced in 2016, it has helped secure more than $29.5 billion in additional tax revenue from multinational enterprises, large public and private businesses.
