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Decision Impact Statement - Commissioner of Taxation v Glencore Investment Pty Ltd

The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the Decision Impact Statement - Commissioner of Taxation v Glencore Investment Pty Ltd (DIS). 

The decision in Commissioner of Taxation v Glencore Investment Pty Ltd (Glencore) is of interest to taxpayers because it provides practical guidance on the approach to, and categories of, evidence they must produce to show that a transaction was on arm’s length terms for the purposes of transfer pricing. Compliance with the arm’s length requirement for transfer pricing purposes is a factually difficult area of the law and requires a significant investment of resources by taxpayers to ensure that they can satisfy the relevant evidentiary standards. 

The Tax Institute is of the view that the Glencore case provides opportunities for the ATO to provide greater clarity on these matter in the DIS. We consider that advice or guidance by the ATO that clarifies or reduces this evidentiary burden can significantly reduce taxpayer compliance costs. It will also ensure taxpayers provide only relevant information to the ATO, thereby potentially reducing administrative resources required by the ATO to examine arm’s length transactions for these purposes. 

Submission prepared by:

The Tax Institute

Submitted to:

Helen Kelly
Assistant Commissioner 
Tax Counsel Network 
Australian Taxation Office

Nitin Gulati 
Acting Assistant Commissioner 
Tax Counsel Network 
Australian Taxation Office 

For more information, contact:

Abhishek Shekhawat
Associate Tax Counsel, The Tax Institute
(02) 9017 8973

Tagged
  • 2021
  • Personal tax & transfer system
  • Personal tax
  • Compliance