Glencore Investment Pty Ltd v. Federal Commissioner of Taxation

Holding

The arm's-length-pricing analysis for related-party transactions must consider the commercial alternatives realistically available to the taxpayer, not just industry-comparable arrangements.

Facts

Glencore Australia priced copper concentrate sales to a related Swiss marketing entity using terms challenged as not arm's-length.

Reasoning

The Full Federal Court accepted Glencore's pricing methodology, finding that the related-party arrangement was within the range of commercial outcomes. The case is a leading Australian transfer-pricing decision.