Form and substance in Australia's transfer pricing rules
Source: The Tax Specialist Journal Article
Published Date: 1 Oct 2018
In the absence of a specific legislative direction or guidance from the courts, there is much uncertainty with respect to the meaning of the words form and substance in Australia's transfer pricing rules, as well as how the first and second exceptions in s 815-130 of the Income Tax Assessment Act 1997 (Cth) apply. As such, care and careful consideration are needed with respect to supporting transfer pricing positions. This article examines the meaning of the words form and substance, what is an inconsistency between form and substance, and the effect of disregarding some or all of the form of the commercial or financial relations. This article also examines if the inclusion of the word substance in s 815-130(3)(c) affects the meaning of the word substance in s 815-130(1)(b) and (2) and vice versa, and analyses form and substance against the OECD transfer pricing guidelines.
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Details
- Published By: Damian Preshaw CTA
- Published On:1 Oct 2018
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