Australia vs Singtel: JUDGMENT

Case Information

  • Court: High Court of Australia
  • Case No: M28 of 2024
  • Applicant: Singapore Telecom Australia Investments Pty Ltd
  • Defendant: Commissioner of Taxation
  • Judgment Date: 25 October 2024

The High Court of Australia deliberated on a significant transfer pricing case between Singapore Telecom Australia Investments Pty Ltd (STAI) and the Commissioner of Taxation, centering on whether a parental guarantee should be implied in assessing the arm’s length nature of intercompany loans. The Commissioner argued that the financial arrangements between STAI and its related parties should consider the implicit financial support provided by the ultimate parent company, SingTel. This imputation would lower the interest rate, affecting STAI’s deductible interest expenses under Australian tax law.

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File Type: pdf
File Size: 106 KB
Countries: Australia
Tags: Arms Length Principle, Comparable Uncontrolled Price Method, CUP, International Tax, MNE Compliance, Tax Law, Tax Risk Management, Transfer Pricing