Anti-avoidance Transfer pricing Income tax

The Commissioner's hypothesis about your business - Transfer pricing observations

Source: Taxation In Australia Journal Article

Published Date: 1 Sep 2014


In Australian income tax law, there are two areas in which the Commissioner of Taxation may advance a hypothesis about how business transactions should have been undertaken, or that a particular business transaction would not have been undertaken. These are the general anti-avoidance rules in Pt IVA of the Income Tax Assessment Act 1936 (Cth) and the transfer pricing rules in Div 13 of Pt III of that Act, and Div 815 of the Income Tax Assessment Act 1997 (Cth). Both areas have recently been subject to amendment. This article examines elements of the new transfer pricing rules concerning the formulation of hypotheses, with a view to identifying likely ar eas of difficulty for both taxpayers and the A TO.

The article also considers recent findings concerning the ATO management of transfer pricing matters. In the author’s view, recent Div 13 cases continue to provide helpful guidance when considering the formulation of hypotheses under the new rules.

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


  • Published By: Tony Pane
  • Published On:1 Sep 2014

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))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

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.


Anti-avoidance Transfer pricing Income tax 2014

Share this page