Nick Houseman FTIA (PricewaterCoopers) and Tax Counsel Deepti Paton ATIA attended a meeting of the NTLG Transfer Pricing Sub-Group on Tuesday 16 November 2010.At the meeting, the group discussed the impact of the new TR 2010/7 (which sets out the ATO's view on the interaction between thin capitalisation provisions and transfer pricing provisions). The ATO confirmed that it would not apply the transfer pricing provisions in relation to debt in a manner that was contrary to the policy intention of the thin capitalisation provisions.
The ATO also gave the group a status report on the implementation of the APA review recommendations. The ATO intends to roll out its new APA guide in early 2011 at this stage.
The group also discussed the draft TR 2010/D2 on business restructures. The ATO gave the group an update on the feedback it has received on this draft via the consultation process and the ways in which it has incorporated this feedback into the final ruling as appropriate. The final ruling is scheduled for release on 9 February 2011.