The Full Federal Court issued its decision in a generally taxpayer-favorable case. The Commissioner’s appeal was allowed with regard to only one item relating to a freight allowance.
The case is: Commissioner of Taxation v. Glencore Investment Pty Ltd.  FCAFC 187 (6 November 2020)
In the technically complex and lengthy judgment (114 pages), the Full Federal Court considered a number of matters including the statutory questions posed under Division 13 of Part III of the Income Tax Assessment Act 1936 (Div 13) and Subdivision 815-A of the Income Tax Assessment Act 1997 (Subdiv 815-A).
Key practical lessons can be gleaned from the case to assist taxpayers in managing the pricing of cross-border arrangements:
Taxpayers in a dispute with the Commissioner regarding the application of the transfer pricing rules need to consider conducting several key tasks in preparing the necessary evidentiary support required to successfully defend positions taken and to withstand scrutiny.
Read a November 2020 report [PDF 252 KB] prepared by the KPMG member firm in Australia
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