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Australian taxpayers to face enhanced transfer pricing scrutiny

August 6th, 2009

Transfer Pricing Week

Australia’s tax authorities have vowed to scrutinise taxpayers’ transfer pricing activities and thin capitalisation rules in a bid to help businesses and individuals facing genuine hardship during the economic downturn.

Releasing the tax office’s compliance programme for 2009-10 yesterday, tax commissioner Michael D’Ascenzo said the ATO will focus on the use of arrangements between Australian and offshore entities, including branches to shift profits and tax from Australia to other countries.

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