Sep 2016

Why Australian Accountants need to be concerned about the ATO’s recent moves to tax Outsourcing companies

By: Odyssey Legislation
Tags: Diverted profits tax, Offshore entities, Offshoring, Outsourcing, Royalties

In the recent case of Tech Mahindra Limited v FCT, the Federal Court held that an Indian resident company which carried out IT services for Australian clients both from its Australian permanent establishment (PE) employees and by its Indian employees was liable to tax in Australia in respect of part of the income derived from the services provided from India. …