{"id":2670,"date":"2011-02-09T14:44:39","date_gmt":"2011-02-09T09:14:39","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2670"},"modified":"2011-02-09T14:44:39","modified_gmt":"2011-02-09T09:14:39","slug":"transfer-pricing-implications-of-business-restructuring-by-mnes-australian-ruling","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/transfer-pricing-implications-of-business-restructuring-by-mnes-australian-ruling\/","title":{"rendered":"Transfer Pricing Implications Of Business Restructuring by Multi Nationals"},"content":{"rendered":"\n\n
Click here to download the judgement (transfer_pricing_australian_ruling.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n

Australian Tax Office Ruling on Transfer Pricing Implications
\n<\/strong><\/p>\n

The Australian Taxation Office has issued a \u2018Taxation Ruling<\/strong>\u2019 dated 9.2.2011 in which it has discussed the application of the transfer pricing provisions to business restructuring by multinational enterprises<\/strong>. <\/p>\n

The Ruling considers situations where such transfers occur between MNE members to implement changes in the MNE\u2019s existing business arrangements or operations. Common examples are product supply chain restructurings involving conversion of a distributor into a sales agency arrangement or of a manufacturer into a provider of manufacturing services. Business restructurings also commonly involve the transfer of the ownership and management of intangibles such as patents, trademarks and brand names. <\/p>\n

The Ruling explains the following process for setting or reviewing transfer pricing <\/p>\n

Step 1<\/strong>: Characterize the international dealings between the associated enterprises in the context of the taxpayer\u2019s business <\/p>\n

Step 2<\/strong>: Select the most appropriate transfer pricing methodology or methodologies <\/p>\n

Step 3<\/strong>: Apply the most appropriate method and determine an arm\u2019s length outcome<\/p><\/blockquote>\n

The Ruling refers extensively to the \u201cTransfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD Guidelines)<\/strong>\u201d.<\/p>\n

The Ruling also gives practical examples<\/strong> to explain the transfer pricing law. <\/p>\n

\nSee also<\/strong>: Intel Asia Electronics Inc vs. ADIT (ITAT Bangalore<\/a>) & In Re Dana Corporation<\/a><\/strong> 32 DTR 1 (AAR). For the relevance of such rulings & commentaries see Asia Satellite Telecommunications Co vs. DIT (Delhi High Court)<\/a><\/strong>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Australian Taxation Office has issued a \u2018Taxation Ruling<\/strong>\u2019 dated 9.2.2011 in which it has discussed the application of the transfer pricing provisions to business restructuring by multinational enterprises<\/strong><\/p>\n

Read more ›<\/a><\/div>\n

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