Yes it is a flawed suggestion. I believe there is some law that requires fair and reasonable value to be placed on this happening or you would find all foriegn companies operating export businesses in australia would be able to completely avoid payiong any taxes in Australia.
It would also be a problem with any dividends paid to Aussie shareholders as no franking would be allowed. Two things are inevitable, death and taxes.
off shore processing, what benefit, page-4
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