Taxation Ruling on interaction of thin capitalization and transfer pricing rules issued

On 16 December 2009, the Australian Taxation Office (ATO) issued draft Taxation Ruling TR 2009/D6 dealing with the interaction of the thin capitalization rules with the transfer pricing provisions (where the Commissioner takes the view that, even if an entity does not have "excess debt", the transfer pricing rules can still be applied to reduce the interest payable to an offshore e…
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