Transfer Pricing Money – The Chevron Case

ITP @ 20 [1996 – 2016]: CELEBRATING TWENTY YEARS OF THE INTERNATIONAL TAX PROGRAM OF THE NEW YORK UNIVERSITY SCHOOL OF LAW, H.D. Rosenbloom, et al, eds, NYU School of Law, USA, 2016

Sydney Law School Research Paper No. 16/72

35 Pages Posted: 18 Aug 2016 Last revised: 27 Mar 2017

See all articles by Richard J. Vann

Richard J. Vann

The University of Sydney Law School

Graeme S. Cooper

The University of Sydney Law School

Date Written: August 14, 2016

Abstract

The Chevron case decided by the Federal Court of Australia in late 2015 demonstrates the ongoing failure of international tax law and transfer pricing to deal with the basic issue of pricing money. Information for the apparently simple exercise of pricing an intra-group loan sufficient to satisfy a judge cannot be obtained and the OECD and ATO refuse to provide meaningful practical assistance. Moreover, although the OECD has a chance in 2016-2017 to improve matters as it considers the interaction of the final BEPS reports on Action 4 and Action 9, it seems unlikely that much will happen based on the record to date. Developing countries in particular for which the OECD now expresses much sympathy in dealing with international tax issues have reason to be unhappy with the international efforts.

Keywords: International taxation, tax treaties, transfer pricing, interest deductibility

JEL Classification: K10, K30, K33, K34

Suggested Citation

Vann, Richard J. and Cooper, Graeme S., Transfer Pricing Money – The Chevron Case (August 14, 2016). ITP @ 20 [1996 – 2016]: CELEBRATING TWENTY YEARS OF THE INTERNATIONAL TAX PROGRAM OF THE NEW YORK UNIVERSITY SCHOOL OF LAW, H.D. Rosenbloom, et al, eds, NYU School of Law, USA, 2016; Sydney Law School Research Paper No. 16/72. Available at SSRN: https://ssrn.com/abstract=2823220 or http://dx.doi.org/10.2139/ssrn.2823220

Richard J. Vann (Contact Author)

The University of Sydney Law School ( email )

Faculty of Law Building, F10
The University of Sydney
Camperdown, NSW 2006
Australia
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HOME PAGE: http://www.law.usyd.edu.au/about/staff/RichardVann/index.shtml

Graeme S. Cooper

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

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