Transfer pricing minutes, August 2009

1 - 3. Intra-Group Loans and Guarantee fee Discussion

Anne Connon opened the meeting, welcomed all members and introduced Jim Killaly to lead a discussion on Intra-Group Loans and Guarantee fees.

Several questions and issues were raised by NTLG TP members. The main topics discussed were:

• The interaction and effect of certain legislative provisions.
• Affiliation and notching and the effect on credit ratings.
• Arm's length capital structures and interest rates
• Guarantees and Independence
• The Rule of Thumb
• Interaction with other countries and the OECD approach
• Benchmarking / Comparables
• The effect of the GFC

Going forward it was agreed that:

• The ATO will meet with APRA as a 'reference check' on the outcomes of the FMWG and the ATO View.
• The FMWG will release the paper to NTLG TP
• The ATO will publish legal opinion and instructions to Counsel when the ATO view is released.

Minutes recorded from this meeting are in attachment which has recorded the discussion under the topics addressed

*Note that while the Minutes and Administration were not formally included as an agenda item (above), the minutes were accepted by NTLG - TP with all action items having all been followed up or in the process of being completed.

Sections within Agenda items

• 1 - 3. Intra-Group Loans and Guarantee fee Discussion
• 4. APA Program review update
• 5. Customs Practice Statement
• 6. ATO Transfer Pricing Compliance Program
• 7. International Dealings Schedule (IDS)
• 8. OECD Update
• 9. Other Business