The Federal Government has released an exposure draft of proposed amendments that will implement the first stage of reforms to transfer pricing.

 

“This draft legislation and associated explanatory materials take into account a number of key issues raised by stakeholders through earlier consultation processes,” Assistant Treasurer David Bradbury said.

 

The proposed amendments confirm that, in relation to treaty cases, the transfer pricing articles contained in Australia’s tax treaties are able to be applied and operate independently of Australia’s unilateral transfer pricing rules.

“These amendments have been introduced to ensure that effect is given to the intentions of the Parliament, that revenue is not compromised, and that international consistency is maintained with our tax treaty partners,” Mr Bradbury said.

 

The draft amendments and explanatory material can be found at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=2348

 

Submissions on the exposure draft legislation close on 13 April 2012.