Australian Government releases Exposure Draft of new transfer pricing legislation for Australia
As part of its ongoing process of reforming Australia's transfer pricing rules, the Australian Government has now released Exposure Draft legislation which it intends will replace the current transfer pricing provisions. The Exposure Draft legislation is more onerous on the taxpayer when compared to the current regime and will impact New Zealand entities who transact with Australian related parties. According to the Australian Government, the purpose of the new transfer pricing legislation is to bring Australia's rules more into line with international best practice and help Australia protect its tax base. In announcing the reforms last November, the Australian Government referred to recent court decisions (e.g. the decision in the SNF Australia case which the Australian Tax Authority (“ATO”) lost) as suggesting that Australia's existing rules may be interpreted in a way that is out-of-sync with international norms. To read more about the draft legislation, we have linked to an article written by Deloitte Australia here. Submissions on the Exposure Draft legislation close on 20 December 2012. Deloitte in Australia will be submitting a response and we would welcome the opportunity to receive any comments you may have or to discuss any aspect of the amendments with you.
Tax Alert December 2012 Contents
- Tax Alert - December 2012
- Allowances: balanced issues paper proposals blighted by accommodation bombshell
- Hope for best, prepare for the audit
- Earthquake issues continue to shake up the tax rules
- Changes loom for mining taxation
- Payments to Non-Resident Film Renters – did you know the rules have changed?
- Attributable FIF income method – election may be required!
- Taxing multinational companies
- Changes made to record keeping allowances