The Federal Court of Australia on 3 September 2019 issued a taxpayer-favorable decision in a marketing hub dispute.
The case is: Glencore Investment Pty Ltd. v. Commissioner of Taxation of the Commonwealth of Australia  FCA 1432. Read text of the decision
The Federal Court held that the taxpayer had satisfied its burden of proof in relation to the transfer prices it used on certain cross-border related-party transactions between its copper mining operations and its Swiss-based trading entity.
Further, the Federal Court found that the Commissioner had misapplied the transfer pricing rules in Division 13 and Subdivision 815-A (this finding has significant implications for the Commissioner’s administration of these provisions).
Key points from the decision include:
The Australian Taxation Office released a statement concerning the court decision, including “whether an appeal is appropriate.”
Read an October 2019 report prepared by the KPMG member firm in Australia
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