Graduate Diploma in International Tax

Globalisation is driving corporate tax systems closer together and often into conflict. For many tax practitioners, it is now not enough to know their own corporate tax system—they must grapple with and question the operation of other corporate tax systems. This subject seeks to develop an ability to understand and analyse any corporate tax system and assess its impact on corporate decision-making. With a dedicated textbook (written by the presenter), this subject compares a number of influential and archetypal corporate tax systems (both common law and civil law) and assesses their behaviour in the context of practical problems. For tax professionals, this subject develops an ability to ask direct and informed questions about a foreign corporate tax system and discuss that system at a high level with foreign tax professionals.

This subject will compare and analyse corporate income tax law in selected countries (Australia, China, Germany and the US, with some reference to the UK) and consider how these laws interface with corporate law. Participants will be encouraged to discuss other jurisdictions with which they are familiar and students are permitted to cover other countries in their research paper. The approaches adopted are analysed by reference to various policy options available. There is a particular focus on problems caused by the artificiality of corporations.

Indicative list of principal topics:

• Identification of entities (including hybrids) subject to corporation tax
• Corporate groups and personal service companies
• Debt versus equity and relief from economic double taxation of dividends
• Cross-border corporate income and dividends
• Gains/losses on the disposal of shares, takeovers and sale of loss companies
• Corporate formation, share buy-backs and liquidation
• Bonus issues, convertible notes, mergers and demergers.

View detailed information in the Handbook

This core tax subject examines the fundamentals of taxation, with a focus on Australia’s most important tax: the personal income tax. It engages with the tax law that is most relevant to legal and tax practice for individuals and businesses.

This subject equips students to interpret statutory tax rules and apply judicial approaches, and to understand the policy and implications of tax reform in this fast-changing and challenging area of law. This subject is required for international tax students and is recommended for all masters students who have had little previous study or experience in tax law and wish to gain a solid grounding in the area.

Indicative list of principal topics:

• Overview of federal and state taxes in Australia, how tax laws are made, sources of tax law, tax policy and design principles and reform
• The structure of the income tax, concept of income and tax rates
• Income tax law, including calculation of taxable income; definition of income from services, property and business, capital gains, deductions and treatment of business and investment assets
• Overview of income tax of business and investment entities
• Tax avoidance and evasion, and the general anti-avoidance rule.

Important information about this Subject

All international students are required to undertake Foundations of Tax Law. This subject provides a necessary grounding in Australian common law and statutory law of taxation, enabling a comparison with students’ home country tax systems. It provides the foundation for successful study in the other tax subjects studied in the course.

This applies to students enrolled in the following courses:

• Master of International Tax
• Master of Tax
• Graduate Diploma in International Tax
• Graduate Diploma in Tax
• Specialist Certificate in Tax

More information on course planning in the Melbourne Law Masters.

View detailed information in the Handbook

This core international tax subject is of central importance given Australia’s ever-growing role in the modern, global economy. and contemporary reforms intended to address the effects of digitisation and base erosion and profit sharing This subject covers the fundamental international income tax rules that apply where income or capital gains are derived in circumstances that have a connection with Australia. It considers Australia’s tax jurisdiction of residence and source, and relief from double taxation under domestic law. It also examines measures to prevent tax avoidance, such as controlled foreign company rules.

This subject is designed to explore in detail the fundamental principles of Australia’s international taxation regime. The subject will examine both the issues of tax design and policy, and the relevant provisions in the legislation, cases and rulings.

Indicative list of principal topics:

• Principles of international taxation
• Rules for determining residence and source
• Rules for the taxation and avoidance of double tax of residents’ foreign income including foreign income tax offsets and exemption of foreign income
• Rules for the taxation of non-residents’ Australian source income (business income, interest, dividends and royalties)
• Introduction to accruals taxation of controlled foreign corporations.
• Overview of rules for the prevention of base erosion and profit shifting including the multinational anti-avoidance law, diverted profits tax and thin capitalisation rules.

Note: Advanced treatment of tax treaties, controlled foreign corporations and trusts, thin capitalisation, transfer pricing, base erosion and profit shifting will be provided in the following suite of advanced and specialist international tax subjects.

• International Tax: Anti-Avoidance
• Transfer Pricing
• Tax Treaties
• Current Issues in International Tax

View detailed information in the Handbook

Globally, countries have negotiated more than 3,000 bilateral tax treaties and the number of treaties continues to grow. Tax Treaties provides an in-depth examination of international tax treaties, regarding both inbound and outbound investment. This subject uses the Organisation for Economic Co-operation and Development (OECD) Model Treaty and Commentary and examines important tax treaties of Australia and its major trading partners.

Professor Richard Vann has advised the OECD and country governments on these issues. This lively, engaging and relevant subject equips students to deal with the most topical and advanced issues of international tax in the application and interpretation of tax treaties, including the meaning of permanent establishment and taxation of business profits, residence and source, the treatment of investment income, exchange of information and avoidance of double taxation.

Indicative list of principal topics:

• The role of tax treaties in preventing double taxation and tax avoidance
• Interpretation of tax treaties
• Relationship between tax treaties and domestic law
• Impact of tax treaties on investing in Australia
• Impact of tax treaties on investing overseas
• Entities and tax treaties
• The mutual agreement procedure
• Tax treaties and tax avoidance.

View detailed information in the Handbook

International transfer pricing is the price charged for the cross-border transfer of assets or services between associated enterprises in a multinational enterprise group. Transfer pricing is consistently identified in international surveys of multinational enterprises as the most important tax issue they face. Multinational enterprises have to deal with demands from the various jurisdictions in which they operate as national tax agencies implement measures to protect their revenue from cross-border trade between associated entities.

This subject studies the Australian transfer pricing rules and their application. The Australian transfer pricing rules are based on the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines. This subject is designed for tax advisers, in-house tax managers and government officials, as well as those practising in transfer pricing. A background in transfer pricing is not required.

Indicative list of principal topics:

• OECD guidelines on transfer pricing
• Australia’s tax legislation and tax rulings on transfer pricing
• Australia’s tax treaties and transfer pricing
• Case law
• Transfer pricing methodologies—selection and application for the following transactions in respect of tangible goods, intangible assets, services and financial transactions
• Transfer pricing documentation requirements
• Performing a comparable search (benchmarking)
• Completing the transfer pricing section of the tax return
• Risk reviews and audit approach.

View detailed information in the Handbook

This subject will provide a detailed comparative analysis of the principal topics in international income taxation. Following an introduction to the foundations of international tax systems, the core principles of international income tax will be examined, with the different approaches taken by nations (developed, emerging, and developing countries) outlined and critiqued. This discussion will include the multilateralised bilateralism established by the tax treaty models of the OECD and UN, which form the basis for the more than 3.500 existing tax treaties. Based on a deeper understanding of those building blocks, the different perspectives of various nations with regard to the fair allocation of taxing rights, especially in the globalised and digitalised economy, will be explored. We will include a focus on the recent and ongoing (multilateral) attempts to stabilize the international tax system, such as the OECD Base Erosion and Profit Shifting (BEPS) project, the OECD Two Pillar Solution, ongoing transparency efforts, and work on the UN Framework Convention. It will also address the relationship between international trade and investment law and tax law, particularly amid rising trade tensions.

Our subject equips students to analyse international tax issues using a comparative approach and to acquire a deep understanding of the underlying structural, institutional, and policy influences that have shaped and will shape international income tax systems. This knowledge is directly applicable to analysing international tax problems in any country.

Indicative list of principal topics:

• Broad trends in international tax policy and structure across countries;
• Jurisdiction to tax (residence and source) and the impact of tax treaties;
• Taxation of foreign income of residents, including elimination of double taxation;
• Taxation of non-residents, including the scope of source taxation and "fair" allocation of taxing rights;
• International anti-avoidance rules, including controlled foreign company rules, thin capitalisation rules/interest barrier rules, indirect transfer rules, and transfer pricing;
• OECD and UN initiatives in international taxation, including BEPS, Two Pillars, UN Framework Convention, Global Forum);
• The relationship between international trade and investment law and tax law.

View detailed information in the Handbook

This subject extends the study of international tax from fundamental principles to a range of advanced topics affecting inbound and outbound investment by companies, other entities, and individuals. The subject examines tax design and policy as well as the technical operation of Australian tax law. Recurrent themes include international tax avoidance, counter-measures developed through the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, Australia’s legislative and treaty responses to BEPS, and the counterpoint of avoiding or relieving international double taxation. The subject includes a critical examination of the policies underlying Australia’s rules and whether their technical implementation achieves their policy objectives. It also considers the ongoing reform of international tax rules, particularly through the BEPS Project. BEPS reforms are redefining the rules for countering international tax avoidance. This subject enables scholars and practitioners working in international tax to be aware of how international tax rules are being developed and reformed both globally and in Australia.

Indicative list of principal topics:

• Australia’s CFC rules, studied in depth
• Transferor trust rules
• The multinational anti-avoidance law (MAAL)
• The diverted profits tax (DPT)
• Thin capitalisation rules
• Hybrid mismatch rules
• Tax treatment of unfamiliar or hybrid entities
• Treaty-related anti-avoidance rules
• Exchange of information and other administrative assistance between tax administrations

View detailed information in the Handbook

Chinese tariffs and tax law and policy play an important role in doing business with China. This subject offers a general introduction of the Chinese tariffs and tax regime, and also addresses the core elements of Chinese tariffs, value added tax, individual income tax, enterprise income tax, anti-tax avoidance measures and tax treaties which usually are the key factors influencing international trade and investment when involving China. Furthermore, the subject will bring you up to date through exploring the impact on China by the ongoing trade war and the international initiatives to tax digital economy, both of which are of high attention from business.

Indicative list of principal topics:

• A general introduction to the Chinese tariffs and tax regime: source of law, main players, tax mix, tax administration and dispute resolution.
• China’s tariffs law and policy: WTO, free trade zones, anti-dumping and anti-subsidy, and impact by the trade war.
• China’s Value Added Tax: the governing laws, taxpayers, calculation, and tax invoices.
• China’s Individual Income Tax: the governing laws, taxpayers, calculation, and filing.
• China's Enterprise Income Tax: the governing laws, taxpayers, source rules, tax rates, calculation and filing obligations, and tax incentives.
• China's tax treaties: bilateral tax treaties and multilateral conventions, taxing business profits, permanent establishment, taxing dividends, interest and royalties, credit method.
• China's anti-tax avoidance measures and tax cases: transfer pricing rule, thin capitalisation rule, CFC rule, GAAR and taxing offshore indirect shares transfers.
• Impact on China by the G20-OECD BEPS Project and the Two-Pillar Solution to address the tax challenges arising from the digitalisation of the economy.

View detailed information in the Handbook

All governments need robust tax systems capable of funding them. Modern tax systems have also taken on other public policy roles, in income distribution and economic activity, and become integral to governments’ social and economic policies. Tax policy design thus entails a challenging mix of economic, social, legal, accounting and administrative policies - which has become more complex in a world of increasingly mobile capital and labour.

This subject looks at Australia’s tax system and experience with reform over recent decades, comparing it with other countries. The subject will analyse the available tax bases, the interactions between the tax and transfer systems and issues of tax law design and administration.

Indicative list of principal topics:

• Introduction to economics, fiscal policy and the processes of government
• Principles, objectives and main concepts in tax policy formulation
• Analysis of the main tax bases in Australia
• Major issues in tax reform in Australia, including in relation to revenue adequacy, economic efficiency, social equity and administrative simplicity
• Interactions between the tax and transfer systems
• The potential of the tax system to pursue environmental objectives

View detailed information in the Handbook

Climate change is increasingly necessitating systemic change to the structure of the global economy and financial system. This subject will examine the interaction between climate change law and policy and these systemic changes. It considers a range of legal, policy and financial tools that governments around the world have used to try and manage responses to climate change, such as carbon pricing, green fiscal spending, climate risk disclosure and emissions regulations. It critically evaluates these legal, financial and policy approaches, and the economic theory underpinning them.

Our subject introduces students to these climate change legal and policy approaches through case studies across different themes (carbon markets, sustainable finance, energy, transportation) and geographies. Guest speakers with legal, sustainable investment and public policy backgrounds will join the course to speak to some of these case studies. By drawing together economic theory and practitioner-informed case studies, we will provide students with the knowledge, tools, and networks to critically assess and participate in the future development of regulatory regimes, policies and financial mechanisms which might help arrest global warming.

Indicative list of principal topics:

• An introduction to climate science,
• Key debates in climate change economics
• International and domestic law frameworks
• Market-based legal mechanisms: pricing carbon externalities
• Information based regulatory approaches to carbon emissions
• Emerging legal risks – greenwashing, climate litigation and investor actions
• Green industrial policy, state-owned enterprises and innovation ecosystems
• Emissions caps, performance standards and other forms of regulation

View detailed information in the Handbook

This core tax subject examines the fundamentals of taxation, with a focus on Australia’s most important tax: the personal income tax. It engages with the tax law that is most relevant to legal and tax practice for individuals and businesses.

This subject equips students to interpret statutory tax rules and apply judicial approaches, and to understand the policy and implications of tax reform in this fast-changing and challenging area of law. This subject is required for international tax students and is recommended for all masters students who have had little previous study or experience in tax law and wish to gain a solid grounding in the area.

Indicative list of principal topics:

• Overview of federal and state taxes in Australia, how tax laws are made, sources of tax law, tax policy and design principles and reform
• The structure of the income tax, concept of income and tax rates
• Income tax law, including calculation of taxable income; definition of income from services, property and business, capital gains, deductions and treatment of business and investment assets
• Overview of income tax of business and investment entities
• Tax avoidance and evasion, and the general anti-avoidance rule.

Important information about this Subject

All international students are required to undertake Foundations of Tax Law. This subject provides a necessary grounding in Australian common law and statutory law of taxation, enabling a comparison with students’ home country tax systems. It provides the foundation for successful study in the other tax subjects studied in the course.

This applies to students enrolled in the following courses:

• Master of International Tax
• Master of Tax
• Graduate Diploma in International Tax
• Graduate Diploma in Tax
• Specialist Certificate in Tax

More information on course planning in the Melbourne Law Masters.

View detailed information in the Handbook