Australia: New bill introduced to retrospectively amend transfer pricing rules

Tax Insights ()

The Australian Government introduced today into Parliament a Bill to retrospectively amend Australia’s transfer pricing rules. The Bill confirms the intent of the Government to introduce legislation that would allow the Commissioner to issue transfer pricing assessments under the Associated Enterprises or Business Profits Articles of Australia’s Double Tax Agreements. This power will be in addition to the Commissioner’s existing ability to raise transfer pricing assessments under Division 13 of the Income Tax Assessment Act. The Bill is broadly consistent with the intent of the Exposure Draft Legislation released in March (refer to PwC’s PKN dated March 27, 2012), although there are a significant number of drafting changes. If passed, the Bill will have retrospective effect from 1 July 2004.