GLOBAL SERVICE ARRANGEMENTS: "AUSTRALIAN GST NEEDS TO MOVE WITH THE TIMES"

In this article, the author highlights the potential risks which may arise under Australian GST in the framework of outbound service charges and explains how global service agreements can give rise to GST costs, potentially reducing the desired effect of global corporate (income) tax saving initiatives. Businesses which are most affected by the Australian GST rules are clearly non-resident companies with subsidiaries and/or branches in Australia and overseas headquarters, as well as Australian companies with operations abroad.