shopping_cart

Your shopping cart is empty

The reconstruction provision in the Australian transfer pricing rules

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.

Author profile

Ian Fullerton CTA
Ian is a Barrister, Ground Floor Wentworth Chambers. - Current at 29 October 2019
Click here to expand/collapse more articles by Ian FULLERTON.

 

Copyright Statement
click to expand/collapse