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Commissioner’s appeal in FCT v Glencore Investment Pty Ltd
Published on 01 Feb 21 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The decision of the Full Federal Court in FCT v Glencore Investment Pty Ltd reinforces the importance of facts and evidence, including lay and expert witnesses, for both taxpayers and the Commissioner in transfer pricing cases. The opportunity for the Commissioner to reconstruct international agreements to support transfer pricing adjustments appears to have been narrowed. However, it will be necessary to see how far that extends to transactions to which Subdiv 815-B ITAA97 could apply. The reduced reliance on the OECD guidelines is also of interest. A clear message is that transfer pricing is not an exact science and that there
will not generally be one perfect price. Rather, there will be an acceptable range. Regardless, the need for taxpayers to document and validate their positions remains unchanged and cannot be overstated.
Author profile
Sue Williamson CTA-Life
Sue Williamson, CTA (Life) leads the Holding Redlich Melbourne Tax Risk Management and Disputes practice. She advises clients on tax risk management including tax governance and ensuring that clients have sufficient evidence to defend their positions. She has acted in various AAT, Federal Court, High Court and Supreme Court tax cases. Sue is also an accredited mediator and has assisted clients in resolving disputes using various ADR mechanisms. Sue was the President of The Tax Institute in 2008, has been a member of several advisory boards, has participated in many consultative forums and lectures in the University of Melbourne Masters of Law program. - Current at 04 July 2023
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