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

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OCTOBER 28, 2025

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

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