In the 2017-2018 Federal Budget, the government announced that it will extend the scope of the Multinational Anti-avoidance Law (MAAL) so that it will apply to corporate structures that interpose partnerships that have any foreign resident partners, trusts that have any foreign resident trustees, and foreign trusts that temporarily have their central management and control in Australia. This measure, intended to ensure the integrity of the original policy intent, will apply retrospectively from January 1, 2016.

PwC observation:

Given the increase in scope, taxpayers should assess the potential impact of the extension of the MAAL on their transactions and corporate structures. This will require a holistic analysis of various aspects of their arrangements including identifying the location and amount of foreign taxes paid, the non-tax rationale for arrangements, and the economic substance of all relevant entities; consideration of reasonable alternatives to the arrangements and whether a different tax outcome could have arisen.