WHAT BEPS MEANS TO YOU

LATEST NEWS

WHAT BEPS MEANS TO YOU

We were pleased to attend a recent seminar by Greenwoods + Herbert Smith Freehills that discussed the final reports for the OECD’s global base erosion and profit shifting (BEPS) measures released on 5 October 2015.  The OECD has estimated an annual loss of US$100 billion to US$240 billion in global tax revenue and has identified 15 actions to close the gaps.

We will leave the detailed analysis of the 2,000 plus pages of rules/guidance to our tax and legal friends Greenwoods + Herbert Smith Freehills, but from a valuation perspective there is likely to be more scrutiny on the outcomes and assumptions for transfer price arrangements (in terms of transfer price and allocation of value), particularly for early stage technology/IP assets and other intangibles defined as ‘Hard to Value Intangibles’.

For those of you that don’t like change, it appears as though Australia’s existing thin capitalisation regime is unlikely to be impacted.

OTHER NEWS

discount rates early warning June 2024

DISCOUNT RATES EARLY WARNING 28 JUNE 2024

Markets have declined over the last quarter as persistent inflation and the potential for further rate rises continue to weigh on the ASX 200. These fears have seen a rapid increase in government bond yields over the last month. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 30 September 2023.

stable market discount rates March 2024

STABLE MARKET DISCOUNT RATES

Markets have declined over the last quarter as persistent inflation and the potential for further rate rises continue to weigh on the ASX 200. These fears have seen a rapid increase in government bond yields over the last month. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 30 September 2023.