Australia Launches Review of Reforms to Interest Deduction Rules

Australia’s Board of Taxation will begin an independent review next month of the government’s reform of rules limiting deductions multinational companies can claim from interest payments on their debt.

The reforms to the so-called thin capitalization rules, finalized last August, aim to curb tax avoidance and ensure multinationals pay a fair share of tax in Australia.

The board’s review will consider “the overall performance of the amendments in strengthening Australia’s thin capitalisation rules,” according to a press statement issued Friday by the government.

The review will determine if further changes are ...