CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Australian Company Wins Transfer Pricing Appeal In Indonesia

Australian Company Wins Transfer Pricing Appeal In Indonesia

By Mary Swire, Tax-News.com, Hong Kong

28 December 2012


The Indonesian subsidiary of an Australian South Sea pearl producer has won an appeal against a tax assessment which had disputed the company's transfer pricing arrangements.

According to a statement issued by Atlas South Sea Pearl, the ruling by the Indonesian Tax Court in Jakarta on behalf of its subsidiary PT Cendana Indopearls is "a significant victory for the inter company transfer pricing agreement and will help in future tax audits in Indonesia."

The company had argued that it had "complied with transfer pricing protocols which have been historically authorised" by Indonesian tax authorities, and that the revised assessment was "inconsistent with these prior rulings."

The appeal concerned an assessment for the 2007 tax year, for which the company was assessed as owing an extra AUS1.427m and given penalties amounting to a further AUS565,000. This was paid, and PT Cendana Indopearls is now due to receive a tax rebate, including interest, of around AUS2m.

The company had also sought to amend the 2007 assessment through the filing of a Mutual Application Process in Australia under the terms of double taxation treaties between Indonesia and Australia.

TAGS: court | tax | double tax agreement (DTA) | commerce | tax authority | transfer pricing | Indonesia | penalties

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »