Since taxation in most countries is based on a company’s residence it is an important consideration in international tax law. Even if the company was incorporated outside Australia there are instances where it can be taken to be resident in Australia for tax purposes. Although there have not been any substantial amendments in this area recently there is a significant amount of case law that must be consulted from time to time. This ensures advice about tax implications given to you and your business is up to date. A lawyer specialising in the area of international taxation law can help you understand your tax obligations and ensure you are getting the most accurate and recent advice.

When investing outside Australia you must be aware of the laws in the countries you are investing in. You will need professional assistance in determining the legal position of your investments abroad before planning your strategy in Australia.

One of most important things to do is to consider how the relevant double tax treaty will affect your tax position. The taxation concepts in international tax law treaties must be understood and correctly applied to the facts of your particular case. This is a complex specialist task and requires expert legal assistance. For instance your business should to be structured so that it does not have a permanent establishment in a country that taxes company income at a rate higher than Australia. Such considerations can make or break your company's success.

The most crucial aspect of international taxation is that your actions must not violate the anti-avoidance provisions. Having a reasonably supportable commercial reason for an international transaction may not always be sufficient to avoid Part IVA of the Income Tax Assessment Act 1936 (Cth). This part of the law allows the Commissioner of Taxation to strike down income tax benefits if you are found to be avoiding your liability to pay Australian income tax. A lawyer can advise you on whether your international activities are likely to breach these provisions.