The Australian Assistant Treasurer has recently Tax Laws Amendment (Cross-Border Transfer Pricing) Bill 2013: Modernization of transfer pricing rules,in which changes to transfer pricing rules were proposed.
The new law focuses mainly on cross-border “conditions” in applying the arm’s length principle. The rules examine the conditions applicable to cross-border transactions and compare them to the conditions that would have applied to similar transactions between independent enterprises. The amendments are intended to ensure the compliance of Australia’s transfer pricing rules with international standards.
