25/02/22

INTERNATIONAL TAX: Double-taxation talks between Greece and Australia begin.

As published on neoskosmos.com, Friday 25 February, 2022.

The first round of negotiations for a Double Taxation Agreement between Australia and Greece began this week on Wednesday.

The Australian Embassy in Greece said in a statement on Facebook that the negotitaitions were launched following the September 2021 announcement by Federal Treasurer Josh Frydenberg that Australia would be expanding its tax treaty network to cover 80 per cent of foreign investment and about $6.3 trillion of Australia’s two-way trade and investment.

The embassy said the talks were: “Heralding new trade and investment opportunities and improved tax efficiency for people who share their lives between Australia and Greece, the Double Taxation Agreement, once concluded, will be another important marker of the thriving bilateral relationship.”

The Australian government plan would allow Australia into 10 new and updated tax treaties by next year and would build on the current network of 45 bilateral tax treaties.

The negotiations began last year with India, Luxembourg and Iceland as part of the first phase of the programme.

The negotiations with Greece are part of the second phase which includes talks with Portugal and Slovenia.

A Treasury media statement last year stated: “Tax treaties improve tax system integrity through the establishment of a bilateral framework of cooperation on the prevention of tax evasion, the collection of tax debts and rules to address tax avoidance.

“Businesses will be provided with greater tax certainty which will encourage increased economic integration through foreign investment and trade.

“In the 2020-21 and 2021-22 Budgets, the Government provided $11.6 million to Treasury and the Australian Tax Office to support this expansion of our tax treaty network.”