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Selected Topics in Transfer Pricing (LAWS90329)
Graduate courseworkPoints: 12.5Online
About this subject
Contact information
September
Teaching staff:
Mike Kobetsky (Subject Coordinator)
Michael Jenkins
Shannon Smit
For current student enquiries, contact the Law School Academic Support Office
Overview
Availability(Quotas apply) | September - Online |
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Fees | Look up fees |
Transfer pricing is a key topic in international tax, particularly for multinational enterprises and tax authorities. A substantial portion of cross-border trade and investment occurs between related parties within these multinational enterprise groups, which operate through locally incorporated subsidiaries. Multinational enterprise groups seek to comply with their tax obligations while avoiding economic double taxation. On the other hand, national tax agencies seek to raise an appropriate amount of revenue from these related cross-border transactions.
The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations provide a framework based on the arm’s length pricing principle for testing cross-border transactions between related parties. Australia’s transfer pricing rules also adhere to this principle.
However, Multinational enterprise groups often encounter challenges in complying with the arm's length principle due to the difficulty in finding comparable transactions between unrelated parties in comparable circumstances. At the same time, tax authorities are required to ensure that multinational enterprises adhere to this principle.
This subject is designed for transfer pricing advisers and individuals seeking to deepen their understanding of transfer pricing.
Indicative list of principal topics:
- Transfer pricing and intangibles
- The Multinational Anti-Avoidance Law
- Diverted Profits Tax
- Dispute resolution
- Advance pricing agreements
Intended learning outcomes
A student who has successfully completed this subject should be able to:
- Apply Australian transfer pricing rules, relevant case law and the OECD Transfer Pricing Guidelines, to complex intra-group cross-border transactions.
- Examine, critically analyse, and assess the effectiveness of transfer pricing principles and rules identifying potential gaps and areas for improvement in both Australian and international context.
- Debate and defend positions on controversial issues in transfer pricing, such as the valuation of intangibles and the application of anti-avoidance laws, by drawing on legal precedents, economic theory, and policy implications.
- Design strategies for resolving transfer pricing disputes, including the formulation of advance pricing agreements that adhere to the arm's length principle
- Investigate and assess the challenges in implementing the arm's length principle, particularly in the valuation of intangibles and services, and propose solutions to enhance compliance and reduce risks of economic double taxation.
Generic skills
- Analyse and critically reflect on complex information, concepts and theories in transfer pricing, and synthesise these to develop coherent and informed perspectives.
- Research and apply advanced principles of transfer pricing to real-world scenarios, demonstrating the ability to integrate theoretical knowledge with practical application.
- Interpret and effectively communicate transfer pricing principles to tax advisers and non-specialist audiences, ensuring clarity and comprehension.
Last updated: 12 December 2024