Australia: Decision Impact Statement issued for SNF appeal decision

Tax Insights ()

The Australian Taxation Office (ATO) has issued a Decision Impact Statement (DIS) which sets out the ATO’s views on the implications of the Court’s decision in Commissioner of Taxation v SNF (Australia) Pty Ltd. Please refer to our PKN article dated 8 June 2011 for a summary of the decision.

The DIS provides insightful comments from the ATO on the transfer pricing issues that were reviewed by the Full Federal Court in the SNF case and on what the Commissioner may do differently in other cases in the future.

The SNF decision was a significant loss for the Commissioner and would have weakened the ATO’s confidence in some of its established transfer pricing practices. There are some bold statements made in the DIS which indicate the ATO’s confidence has returned following the Government’s announcement of the review of Australia’s transfer pricing rules.