Foreign Investment Review Board (FIRB): Tax Conditions
The Taxation Committee and the Foreign Investment Committee of the Business Law Section of the Law Council of Australia (collectively the BLS) would like to take the opportunity to comment on the standard conditions to be met for a FIRB application to be regarded as not being against the national interest, as authorised by Section 74 of the Foreign Acquisitions and Takeovers Act 1975 (the FATA) released by the Treasurer on 22 February 2016 (the Tax Conditions).
The Tax Conditions are being introduced against a background of considerable political pressure; declining commodity prices have resulted in a significant reduction in Australia's tax revenues, and there is a perception that foreign investors are not paying their fair share of tax in Australia. The Government is under pressure to be seen to be tough on multinational tax avoidance.