Transfer pricing regulations approved

On the 30 October 2006, the Finance Committee of the Israeli Parliament approved draft transfer pricing regulations entitled "Fixing Market Conditions". The background to the regulations is the tax reform of 1 January 2003, which included a new Clause 85 A of the Income Tax Ordinance (ITO). This clause allowed the assessing tax officer to correct the reporting by the Israeli party to an international transaction with a related party to an at arm's length price as if no "special …