Friday, 1 July 2016

Alternate Dispute Resolution and Transfer Pricing - 49th Western Australian Convention


We spoke to Dr Niv Tadmore, CTA, a Tax Partner at Clayton Utz, who joins Andrew Orme of the Australian Taxation Office, about the session ‘Alternate Dispute Resolution and Transfer Pricing’, at the 49th Western Australian Convention in August.

Niv’s main areas of practice are in the public groups and international space, in particular large-scale projects, energy and resources, transfer pricing, alternative dispute resolution and ATO engagement.

In their session Niv and Andrew will look at the practical issues that arise when resolving transfer pricing disputes in the context of large-scale and complex transactions.

He pointed out “Some of the current issues facing practitioners include the funding and financing in transfer pricing arrangements. From the more ‘vanilla’ debt arrangements to the more complex finance and currency derivatives present new challenges in transfer pricing.”

Looking at how transfer pricing disputes interact with the Independent Review Function, Niv and Andrew’s session will also look at the role for ADR processes in working through issues.

Niv also pointed out that “The ATO have higher expectations of taxpayers - this manifests in the scope of the ATO's reviews which will often consider a taxpayer's Australian and global operations. It can also impact the timing and comprehensiveness of information requests by the ATO. Taxpayers and their advisors sometimes need to have good discussions with the ATO about scope and timing.”

The session will also provide an update on recent ATO consultation on transfer pricing dispute resolution options which both Andrew and Niv have both been involved in. Niv notes “The ATO seems increasingly confident in transfer pricing disputes, especially following the decision in Chevron and Orica, and in addition the ATO is of the view that Division 815B appears to give the ATO new and / or broader powers.” 1

Niv and Andrew will also present during the panel session ‘The Life Cycle of a Transaction in the Era of Constructive Engagement’, alongside Geofrey Fooks (Wesfarmers) and Jeremy Hirschhorn, CTA (ATO).

The 49th Western Australian Convention takes place 11-12 August 2016 at the Novotel Vines Swan Valley Resort. Choose from 21 sessions over two days, across two streams – SME & Corporate. Includes up to 13 CPD hours. Find out more.


1 Chevron Australia Holdings Pty Ltd v COT (No 4) [2015] FCA 1092. Orica Limited v Commissioner of Taxation [2015] FCA 1399.