M. Butler’s scientific contributions

The authors examine a Consultation Paper released by the Australian Treasury in October 2022 seeking comments on the OECD’s two-pillar response to the challenges posed by the digitalization of the world economy. By way of preliminary comment, there will be significant challenges in Australia meeting the OECD timelines, which envisage Pillar Two coming into effect in 2023 and Pillar One in 2024. However, given the Australian government’s strong support for OECD and G20 initiatives, it seems likely Australia will commit, to the extent possible, to implementing the new global agreement in accordance with the OECD timetable.

In Singapore Telecom Australia Investments Pty Ltd v. Commissioner of Taxation, Moshinsky J has agreed with the Commissioner that SingTel Australia paid excessive interest on an AUD 5.2 billion loan from its British Virgin Islands holding company. Moshinsky J therefore upheld amended assessments disallowing interest deductions of AUD 894 million. However, the simplicity of the result belies the complexity of the Australian transfer pricing provisions and his Honour’s lengthy and careful reasoning. The authors examine the decision in detail and conclude that, despite the Commissioner's success, the transfer pricing landscape in Australia remains uncertain and unpredictable – especially given the taxpayer’s recent (2021) win in Commissioner of Taxation v. Glencore Investment Pty Ltd. All transfer pricing matters clearly need to be considered separately on a case-by-case basis.