Source: The Tax Specialist Journal Article
Published Date: 1 Apr 2020
Australia's transfer pricing laws entail a significant degree of uncertainty due to the unique power they confer to the Commissioner to determine an arm's length profit of an international transaction and treat it as assessable income of the taxpayer. The limits of these powers were greatly illuminated on 3 September 2019 when Davies J delivered her quintessential judgment in favour of the taxpayer in Glencore Investment Pty Ltd v FCT. This article contends that the precedent in this matter effectively limits the Commissioner's discretion to modify or restructure transactions for comparative purposes by establishing a more rigid and procedural methodology that must be followed to effectively wield the powers under Div 815 of the Income Tax Assessment Act 1997 (Cth).
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags