Glencore Australia (CMPL) sold copper concentrate produced in Australia to its Swiss parent, Glencore International AG (GIAG).
The tax authorities found, that the price paid by Glencore International AG to Glencore Australia for the copper concentrate in the relevant years according to a price sharing agreement was less than the price that might reasonably be expected to have been paid in an arm’s length dealing between independent parties.
The tax assessment was brought to court by Glencore.
The ruling of the Federal Court was appealed by the Australian tax authorities.
On 6 November 2020, a Full Federal Court in a 3-0 ruling dismissed the appeal of the tax authorities.
The tax authorities then submitted a application for special leave to the High Court.
This application was dismissed by the Court in a judgement issued 20. May 2021.
Australia vs Glencore 2021