A taxpayer has decided to withdraw its appeal to the High Court concerning an assessment by the Australian Taxation Office (ATO) of AUS $340 million in tax and penalties for interest payments made to related offshore parties.
The taxpayer challenged Australia’s transfer pricing rules and the appropriate method for establishing an arm’s length interest rate for related-party loans. The case—Chevron Australia Holdings Pty Ltd v. Commissioner of Taxation—also raised constitutional issues regarding transfer pricing provisions. The Full Federal Court upheld the ATO’s position in April 2017. Read TaxNewsFlash-Transfer Pricing
The withdrawal of the appeal means that the April 2017 decision of the Full Federal Court is now final. Read a release (August 2017) issued from Australia’s Minister for Revenue and Financial Services.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.