This is a joint Business Council and Corporate Tax Association submission to the Board of Taxation Review of the corporate tax residency consultation guide.
Tax outcomes are important for attracting investment, and a competitive tax system should be complemented by robust tax integrity measures.
But individual tax integrity arrangements (which one could argue is the ATO's position in Practical Compliance Guideline PCG 2018/9) need to reflect, and be mindful of, the modern business environment and the full tax integrity suite in the Income Tax Assessment Acts, Australian Tax Treaties and the Multilateral Instrument.
The residency rules (the law and the taxation rulings and practical compliance guides that support them) should operate to encourage and not hinder economic growth or place unnecessary compliance costs on taxpayers. They should also operate in a way that provide companies with a high level of certainty of outcomes.