The Prime Minister has released a list of priority legislation,
to be introduced in the Autumn parliamentary session, which
commences on 5 February 2013.
High on the list is the Tax Laws Amendment (Cross-Border
Profit Allocation) Bill, which is expected to introduce
the second tranche of transfer pricing reforms.
This follows the release (on 22 November 2012) of
an exposure draft of these reforms and a period of industry
consultation, which we summarise here.
Submissions on the exposure draft closed on 20 December 2012.
Key concerns, as expressed in a range of industry submissions,
include:
- the scope and extent of the reconstructive powers contained in
subdivision 815-B; the key industry concern focussed on the
uncertainty taxpayers will face, given the ATO's extensive
power to substitute arm's length conditions for the commercial
realities of the transaction;
