The Australian Taxation Office (ATO) released final ruling TR 2010/7 on the interaction between the transfer pricing and thin capitalization provisions. The ruling was previously released in draft as TR 2009/D6, and was not substantially changed from the earlier draft ruling.
Briefly, the ATO expresses a view that the transfer pricing provisions may apply to a loan that satisfies the safe harbor test under the thin capitalization provisions. As such, loans should be pric…