05 Sep 2019 Federal Court finds in favour of Glencore
The Federal Court has issued a decision on whether dealings between Swiss-based Glencore International AG and an Australian subsidiary breached transfer pricing rules in relation to the sale and purchase of copper concentrate in the 2007 to 2009 years.
The case considers transfer pricing rules (Subdiv 815-A) the object of which is to ensure related Australian and non-resident entities are taxed consistent with the arm’s length principle. The Commissioner had argued before the Court that amendments made to an agreement between Glencore International AG and its Australian subsidiary were not arm’s length dealings. The Commissioner had issued Glencore with three sets of amended assessments that arose as a consequence of this.
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