24 Jul 088 AAT finalises transfer pricing case - Roche ProductsFollowing the publication of a "preliminary" judgment in April 2008 - see 2008 TAXVINE No 10 (12) (4 April 2008) - the AAT (Downes J, President) has now handed down its final decision and made orders in respect of assessments issued by the Commissioner to the taxpayer for 11 income years from 1993 to 2003. In issuing the assessments the Commissioner relied on the provisions of Div 13 of ITAA 1936 and similar provisions found in the Australia Singapore DTA and the Australia Switzerland DTA. In so doing, the AAT has set aside all but one of the assessments and varied downwards all but two of the assessments. In relation to the income years 2002 and 2003, the AAT determined that it had the power to increase the Commissioner's assessments, notwithstanding the taxpayer's argument that since the assessments were amended assessments which raised income tax under s 136AD, there was no power to further amend to increase the amount of assessable income at the time the Commissioner considered the objections: Roche Products Pty Limited and FCT  AATA 639 (AAT, Downes J, President, 22 July 2008).
For a copy of the decision, go here