Published on 01 Oct 19
by "THE TAX SPECIALIST" JOURNAL ARTICLE
Section 815-130 of the Income Tax Assessment Act 1997 (Cth) contains rules for determining the “commercial or financial relations” on the basis of which the “arm’s length conditions” are to be identified for the purposes of the transfer pricing provisions in Subdiv 815-B. The rules in s 815-130 adopt, to some extent at least, terms and tests contained in transfer pricing guidelines issued by the OECD in 2010 which are specified in s 815-135 as mandatory reference material for the purposes of identifying the arm’s length conditions. Rewritten OECD commentary on the application of transfer pricing rules is also specified in s 815-135 as mandatory reference material in applying Subdiv 815-B for different income years. This article adopts a systematic approach to the interpretation of s 815-130, taking account of mandatory reference material and the possibility that a tax treaty may limit the application of the provision in a particular case.
Ian is a Barrister, Ground Floor Wentworth Chambers.
- Current at
29 October 2019