Tax
Tax » Capital Markets
Many industries such as Energy & Resources are extremely debt as well as equity capital intensive, and the tax treatment of instruments remains critical to their financial and commercial outcomes.
Debt instruments result in a return to investors that is tax deductible to the issuer, while equity instruments result in a return that is non-deductible but frankable – a stark difference backed by a complex law.
Under thin capitalisation laws, the mix of debt and equity proves crucial to the overall tax result, and the withholding tax treatment of returns paid to foreign participants in syndicated financing and debt issues warrants attention. Corrs has proven success navigating these and other issues surrounding successful property finance.
Our Experience
Fortescue Metals Group
Fortescue’s US$2.04 billion senior unsecured note offering, and the follow on US$1.5 billion offering, was the first large scale unsecured high yield offering by an Australian corporate issuer and one of the largest note offerings by an Australian corporate in 2010. Corrs advised JP Morgan and RBS on all Australian income tax, withholding tax and GST issues.
MCC’s US$5.1 billion IPO
When China Metallurgical Group Corporation, a Chinese state owned corporation floated its subsidiary, Metallurgical Corporation of China on the Shanghai and Hong Kong stock exchanges, it was the second largest IPO in the world in 2009.
MoreOur Thinking
Infrastructure early stage tax losses - Welcome reform but issues remain
The draft legislation on tax loss incentives for infrastructure projects is welcome, but gaps remain.
More
Federal Budget 2013-14: A tough one for business, especially multinational business
What are the most significant tax measures that will impact the business bottom line?
More
Australia turns up the heat on large and multinational taxpayers
The government’s announcement that it wants greater transparency around the tax activities of large businesses and multinationals reveals a suspicion that it’s missing out on tax revenue it ought to be getting.
More
A refocused tax treaty network is key to achieving the Asian Century vision
Australia must urgently refocus its tax treaty network towards Asia if it is to compete with Hong Kong and Singapore as a regional investment hub.
More
Are the retrospective transfer pricing measures unconstitutional?
The Government’s willingness to introduce tax laws with retrospective effect creates fertile ground for a constitutional challenge.
More
Federal Budget 2012-13: The major business tax measures
Business won’t be thrilled with the 2012-13 Budget, but should be relieved that other changes floated in the lead up ended up on the cutting room floor.
More
Navigating stamp duty investigations
What are the triggers for these investigations and what do you need to know if you are subject to one of those investigations?
More
The Tax Forum - Worth the wait?
Will this week’s Tax Forum put the wheels back on the tax reform cart? Jonathon Leek considers the Government’s record on tax reform and the likelihood of real and effective reform.
More
Transfer pricing: A complex and pervasive issue
Transfer pricing is an issue that has become more complex and pervasive as a result of the increasing globalisation of business.
More
Watch out, FIN48 is coming
Tax law is not a science, but it’s going to have to move in that direction
MoreOur Experience
Fortescue Metals Group
Fortescue’s US$2.04 billion senior unsecured note offering, and the follow on US$1.5 billion offering, was the first large scale unsecured high yield offering by an Australian corporate issuer and one of the largest note offerings by an Australian corporate in 2010. Corrs advised JP Morgan and RBS on all Australian income tax, withholding tax and GST issues.
MCC’s US$5.1 billion IPO
When China Metallurgical Group Corporation, a Chinese state owned corporation floated its subsidiary, Metallurgical Corporation of China on the Shanghai and Hong Kong stock exchanges, it was the second largest IPO in the world in 2009.
Corrs handled the Australian component of the US$5.1 billion IPO, comprising about 20% of the float. This included all the tax aspects such as a complex pre-IPO restructure, tax due diligence and the tax opinion for the investment bankers. Corrs Tax Team also acted on MCC’s acquisition of iron ore assets at Cape Lambert and Cape Preston in Western Australia.
Our Thinking
Watch out, FIN48 is coming
Tax law is not a science, but it’s going to have to move in that direction
Doing Business in Australia
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Transfer pricing: A complex and pervasive issue
Transfer pricing is an issue that has become more complex and pervasive as a result of the increasing globalisation of business.
A refocused tax treaty network is key to achieving the Asian Century vision
Australia must urgently refocus its tax treaty network towards Asia if it is to compete with Hong Kong and Singapore as a regional investment hub.
The Tax Forum - Worth the wait?
Will this week’s Tax Forum put the wheels back on the tax reform cart? Jonathon Leek considers the Government’s record on tax reform and the likelihood of real and effective reform.
Navigating stamp duty investigations
What are the triggers for these investigations and what do you need to know if you are subject to one of those investigations?
Federal Budget 2012-13: The major business tax measures
Business won’t be thrilled with the 2012-13 Budget, but should be relieved that other changes floated in the lead up ended up on the cutting room floor.
Are the retrospective transfer pricing measures unconstitutional?
The Government’s willingness to introduce tax laws with retrospective effect creates fertile ground for a constitutional challenge.
Australia turns up the heat on large and multinational taxpayers
The government’s announcement that it wants greater transparency around the tax activities of large businesses and multinationals reveals a suspicion that it’s missing out on tax revenue it ought to be getting.
Federal Budget 2013-14: A tough one for business, especially multinational business
What are the most significant tax measures that will impact the business bottom line?
Infrastructure early stage tax losses - Welcome reform but issues remain
The draft legislation on tax loss incentives for infrastructure projects is welcome, but gaps remain.
Our Experts
Craig Milner
Partner Sydney + 61 2 9210 6072
Heran Kim
Special Counsel Sydney +61 2 9210 6200