On 20 August 2012, Tax Laws Amendment (Cross-Border Transfer Pricing) Bill (No 1) 2012 was passed by the Senate without amendment.
The Bill retrospectively amends:
- ITAA 1997, Income Tax (Transitional Provisions) Act 1997 and Taxation Administration Act 1953 to "clarify" that the internationally consistent transfer pricing rules contained in Australia’s tax treaties and incorporated into Australian law provide assessment authority to address treaty related transfer pricing; and ensure that the tax treaty transfer pricing rules are applied in a manner consistent with the relevant OECD guidance material; and
- ITAA 1936 to make consequential amendments.
These amendments apply to income years commencing on or after 1 July 2004.
The Bill now awaits Royal Assent.
In media release No 2012/087, issued 20 August 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, commented on the passage of the Bill.