The Australian Taxation Office (ATO) has released a draft Taxation Determination which outlines the Commissioner’s view that the debt and equity tax rules do not limit the operation of Australia’s transfer pricing rules.
Although this draft Determination is the latest in a series of draft guidance issued by the ATO this year regarding cross-border debt financing, a number of key interpretative issues relating to the practical application of the transfer pricing rules have not been addressed and there are a range of collateral issues flowing from the position taken by this latest Determination which also remain unaddressed.
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