The Resource Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62

Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62

Label
Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62
Title
Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62
Contributor
Subject
Language
eng
Summary
Judgment by the Federal Court of Australia (Full Court), judgment date 21 April 2017. The taxpayer, an Australian company, was the wholly owned subsidiary of a US company. It entered into a credit facility agreement with another US-based subsidiary of the same parent company. This extended an unsecured loan denominated in Australian dollars in respect of which the taxpayer had to pay an interest rate defined by reference to AUD-LIBOR. The taxpayer was then assessed for several tax years since 2004 on the basis that the interest paid on the loan was greater than the arm's length interest rate and would be disallowed as a deduction. A number of issues arose in the interpretation of the domestic legislation and the Australia-US double taxation convention, in particular the construction and content of the hypothetical arm's length transaction with which the actual transaction was to be compared in deciding whether the taxpayer had obtained a transfer pricing benefit. The Full Federal Court unanimously upheld the ruling that the loan was not a genuine "arm's length" transaction and the taxpayer had breached transfer pricing provisions of tax legislation
Citation source
In: International tax law reports. - London. - Vol. 19 (2017), part 6; p. 971-1041
Geographic coverage
North America
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • interest deduction
  • arm's length principle
  • transfer pricing
  • treaty interpretation
  • retroactivity
  • constitutional law
Label
Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62
Instantiates
Publication
Label
Chevron Australia Holdings Pty Ltd v Commissioner of Taxation : [2017] FCAFC 62
Publication

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