The decision in SingTel was handed down by the Federal Court on 17 December 2021, with Justice Moshinsky finding in favour of the Commissioner of Taxation. With the taxpayer's appeal filled but yet to be heard by the Full Federal Court, this presentation provides a reminder of the facts and circumstances of the case and the key lessons from the initial decision, which include:
- Matters which can be applied to all international related party dealings, such as:
- The relevant commercial and economic evidence required to support related party dealings as arm's length.
- Practical considerations when amending related party agreements.
- Matters specific to international related party funding arrangements, such as:
- The relevance of credit rating agencies and debt capital market practices.
- The impact of group policy and practice when assessing the potential for parental guarantees and the charging of guarantee fees.
This presentation also considers the positions of the parties on appeal, and what wider implications the appeal may have for transfer pricing practices and practitioners.