The Australian government has released draft proposals that will launch the first stage of its reform of the transfer pricing system.
Amendments, announced by the then Assistant Treasurer in November last year, have now been published in draft form by the new Assistant Treasurer, David Bradbury. He said: "This draft legislation and associated explanatory materials take into account a number of key issues raised by stakeholders through earlier consultation processes. The government is committed to working with industry to implement these important reforms."
The proposed amendments confirm that, in relation to treaty cases, the transfer pricing articles contained in Australia's tax treaties are able to be applied. It also clarifies that the treaty rules operate independently of Australia's unilateral transfer pricing rules.
"These amendments have been introduced to ensure that effect is given to the intentions of the parliament, that revenue is not compromised, and that international consistency is maintained with our tax treaty partners,” Bradbury explained.
The amendments are intended to apply to income years commencing on or after July 1, 2004.This comprehensive report in our Intelligence Report series examines the global and national landscapes in which companies can use transfer pricing to improve their after-tax returns, including summaries of recent developments in design of the corporate supply train, the usefulness of 'offshore' in international corporate tax planning, and a section covering the spread of DTAAs and CFC laws. It is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report16.asp
TAGS: tax | business | holding company | double tax agreement (DTA) | law | Australia | group taxation | agreements | multinationals | controlled foreign corporations (CFC) | legislation | transfer pricing
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