In Australia, the recent introduction of subdivision 815 has given the Commissioner more extensive powers to transfer pricing adjustments.
Subdivision 815 has made a new approach to Australia’s transfer pricing analysis which goes beyond the traditional OECD transactional focus. Subdivision 815 also gives expansive power for “reconstruction” which fails to offer the explicit OECD caveat that such authority is to be utilized just in “exceptional circumstances”
In March 2013, the ATO discharged a report named, Overview of International profit-shifting risks and activities in the ATO, in which the ATO began referring to transfer pricing more comprehensively as “profit shifting”.
