The tax authority is considering whether to appeal the decision.
The Federal Court of Australia has decided in favor of Glencore in an AUD92m tax dispute with the tax authority.
The case pertains to dealings between Swiss-based Glencore International AG and an Australian subsidiary. According to the Australian tax authority, the case involved breach of transfer pricing rules in relation to the sale and purchase of copper concentrate in the 2007 to 2009 years.
Specifically, the tax authority argued that amendments made to an agreement between Glencore International AG and its Australian subsidiary were not arm’s length dealings.
However, ruling in favor of Glencore, the court rejected the tax authority’s interpretation of Australian transfer pricing rules.
The court ruled that the terms operating between the Australian copper mine and its Swiss trader parent to calculate the price at which the mine sold its entire copper concentrate production were within an arm’s length range.
The tax authority is considering whether to appeal the decision.
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com
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