The consultation paper issued recently regarding non-arm’s-length expenditure contains a fundamental flaw in one of the examples it provides.

The government’s NALE consultation paper is based on an incorrect interpretation of tax law, which does not allow the tax rate to exceed 45 per cent.

The ATO will extend compliance relief for breaches of the NALE provisions despite the government conducting a review of the arrangements.

The government’s NALE solution addresses a problem that no longer exists and could be easily fixed by an amendment to the SIS Act.