Australian Tax Office vs Investment Fund in Transfer Pricing War

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The Federal Court of Australia has set aside tax assessments imposed on the investment fund Glencore, regarding transfer prices paid by its Swiss head office for copper purchased from the group’s mine in New South Wales (Glencore Investment v ATO, 2019).

The court ruled that the prices paid were within the arm’s length principle standard. The judgment will assist corporate taxpayers by setting clear restrictions on the Australian Tax Office’s ability to re-cast-controlled transactions and substitute various beneficial contractual terms.