Friday, 16 March 2012

Exposure draft of law granting Commissioner taxing power under Australia's tax treaties

Earlier today, the Assistant Treasurer released its Exposure Draft (ED) on a proposed retrospective amendment to Australia’s transfer pricing rules.
As foreshadowed in the Assistant Treasurer’s press release of 1 November 2011, the objective of the ED is to allow the Commissioner to issue transfer pricing assessments under the Associated Enterprises or Business Profits Articles of Australia’s Double Tax Agreements (DTAs) in addition to the Commissioner’s existing ability to raise transfer pricing assessments under Division 13 of the Income Tax Assessment Act.
The ED introduces a new section of the Income Tax Assessment Act - Division 815 - which will apply from 1 July 2004. This new Division introduces the concept of a ‘transfer pricing benefit’.
Source: pwc