The Tax Institute welcomes the opportunity to make a submission to Treasury in relation to the consultation on Expanding Australia's Tax Treaty Network which opened on 16 September 2021 (Consultation) in light of the announcement by the Treasurer, the Hon Josh Frydenberg, on 15 September 2021.
In the development of this submission, we have consulted with our National Large Business and International (LB&I) Technical Committee to prepare a considered response which represents the views of the broader membership of The Tax Institute.
We appreciate your time in meeting with our LB&I Committee earlier this month and trust that our comments will assist Treasury in the proposed negotiations and in contemplation of Australia's tax treaty network more broadly.
Tax treaties play an important role in facilitating trade and commerce, and ensuring entities in party jurisdictions are, among other things, not subject to double taxation. From a tax law and policy perspective, The Tax Institute is of the view that the treaties that are currently being negotiated should strive to promote investment and reduce potential distortions or barriers for individuals and
businesses in Australia and our treaty counterparties. To the extent there are integrity concerns, they should be appropriately balanced with the potential economic benefits.