Progressing reforms to Australia's transfer pricing rules
Today the Government released for consultation an exposure draft of proposed amendments to reform Australia's transfer pricing rules.
These reforms, announced last year by the then Assistant Treasurer, will modernise Australia's transfer pricing regime, aligning the domestic law with international best practice and improving the integrity and efficiency of the tax system.
"These reforms will ensure that Australia's domestic laws are applied in a manner that is consistent with international best practice as set out by OECD guidelines," said Mr Bradbury.
"The amendments will also ensure robust transfer pricing rules are in place regardless of whether trade occurs between treaty partners or non-treaty countries."
Australia's current rules have broad coverage and this will be maintained. Direct access to the OECD guidelines will now be available in all cases to help interpret transfer pricing issues, which is particularly important for complex arrangements.
"This will help Australia protect its tax base," said Mr Bradbury.
"The Government is committed to working with industry and the wider community to implement these important reforms.
"I encourage stakeholders to continue engaging with Treasury to provide their feedback on the draft provisions."The draft amendments and explanatory material can be found on the Treasury website. Submissions on the exposure draft legislation close on 20 December 2012.
22 November 2012