Miscellaneous 2010

Transfer pricing: Can the Commissioner make up his own rules?

Source: Taxation In Australia Journal Article

Published Date: 1 Mar 2010

Draft Practice Statement PS LA 3187 provides for a rule of thumb approach to determine allowable interest for Div 13 purposes. Such an approach is inconsistent with arguments recently put by the ATO to the High Court. The High Court has said that the internationally accepted arm’s length principle is the foundation of Div 13. A rule of thumb approach is not a proper application of the arm’s length principle.

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Miscellaneous 2010

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