Quote:
Originally Posted by Dr Smith
As you may remember Toyota Australia was selling to the UAE division at a pricing level that the ATO got involved...$200Million tax charge was the initial bill, not sure what was negotiated in the end....company's won't divulge publicly what goes on between inter-company transactions and Toyota may be happy to carry a loss in one country of higher tax rate as long as globally the numbers are in the black.
I know for a fact Ford won't let one division stay in the red to prop up another, each region is expected to run as a profit centre..wether they do is another story but it's a different structure to how Toyota go about it.
|
The figures that I saw with Camry export to UAE was around $17k per vehicle, so probably at cost and probably a hint to why Toyota Aust was eventually replaced as a supplier. I know it looked really bad in terms of transfer pricing and cutting out government tax but the reality was most likely Toyota Aust had to do that pricing to keep the contract.