This case is about an Australian distributor of pasta – San Remo Macaroni Co – which imported pasta products from an independent manufacturer in Italy. In 1985 a Swiss company – Bigalle – was established by the Australian distributor which going forward purchased the pasta from the independent manufacturer in Italy and resold it to the Australian distributor at a mark-up which varied from 40% to 50%. Following an audit, an assessment was issued by the tax authorities, where the prices paid by the Australian distributor to the Swiss company was adjusted based on the price paid to the Italian manufacturer. Judgement of the Federal Court The Court upheld the assessment issued by the tax authorities. “ (…) 61 Be that as it may, the real substance of the argument was that Mr Read improperly formed the view that the arrangement with Bigalle was merely a reinvoicing arrangement and then “manipulated” the information he obtained as to pasta prices to ... Read more