Australia: Taxpayer granted stay of domestic tax proceedings pending outcome of MAP (Full Federal Court decision)
Unanimously overturned earlier decision of Federal Court judge denying stay
The Full Federal Court on October 21, 2025, unanimously overturned an earlier decision by a Federal Court judge denying the taxpayer’s request for a stay of domestic tax proceedings pending the outcome of a mutual agreement procedure (MAP) between the Australian Taxation Office (ATO) and the Irish tax authorities.
The court found that the Australia-Ireland income tax treaty and the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) supported pausing proceedings to preserve a taxpayer's right to MAP, including arbitration.
The ATO may seek special leave to appeal the Full Court's decision to the High Court of Australia.
For more information, contact a KPMG tax professional in Australia:
James Alsop | jamesalsop@kpmg.com.au
Shalini De Silva | sdesilva25@kpmg.com.au
Sakshi Mathur | smather8@kpmg.com.au
William Ho | who4@kpmg.com.au