atl_logo_white_png_RETINA
atl_logo_white_png_RETINA
Main Menu
Menu

Australia vs Oracle: CASE SUMMARY

Home » Case Library »

Australia vs Oracle: CASE SUMMARY

Case Information

  • Court: Federal Court of Australia
  • Case No: NSD 1302 of 2023; NSD 1303 of 2023; NSD 1304 of 2023
  • Applicants: Oracle Corporation Australia Pty Ltd, Vantive Australia Pty Ltd, and Oracle Capac Services Unlimited Company
  • Defendant: Commissioner of Taxation
  • Judgment Date: 31 October 2024
  • Download the FULL JUDGMENT

Judgment Summary

This case addressed Oracle Corporation Australia Pty Ltd’s application to temporarily stay domestic court proceedings while a Mutual Agreement Procedure (MAP) under the Australia-Ireland double taxation treaty was ongoing. The case revolved around whether payments made by Oracle Australia to Oracle Ireland for sublicensing software were “royalties” under the treaty and thus subject to Australian withholding tax obligations.

The Federal Court of Australia, presided over by Justice Perram, dismissed the application for a stay. The court reasoned that continuing domestic proceedings would provide necessary judicial clarity for similar cases, given that the royalty definition has been contentious under Australian tax law and international treaties. The judgment also recognised the importance of resolving disputes under the MAP but emphasised the broader need to interpret the term “royalties” within Australia’s tax framework and treaty obligations.

Justice Perram highlighted the complementary nature of MAP and domestic litigation. He dismissed arguments suggesting that the MAP should take precedence over judicial processes, instead maintaining that the two could coexist to address taxpayer grievances and avoid double taxation. However, granting a stay might unnecessarily delay a judicial determination with far-reaching implications for other cases involving software payments.

The court acknowledged the tension between ensuring procedural fairness to Oracle and avoiding broader disruptions to tax policy and treaty implementation. It recognised Oracle’s right to pursue MAP but also stressed that the Federal Court had the requisite expertise to address the complex interplay between domestic and treaty law.

The court’s decision underscored the importance of judicial interpretation for guiding taxpayers, revenue authorities, and international treaty negotiations, especially given ongoing disputes between Australia and key trading partners, such as the United States. The judgment granted Oracle leave to appeal.

VIEW THE FULL CASE SUMMARY (WEB)

DOWNLOAD
File Type: pdf
File Size: 203 KB
Categories: Australia
Tags: Comparable Uncontrolled Price Method, CUP, Digital Economy, Global Tax Policy, Mutual Agreement Procedure, Royalties, Tax Compliance, Transfer Pricing
Shopping Cart
Scroll to Top

Compare Programmes

Choose the track that fits your practice focus. All programmes are practitioner-taught, cohort-based, and validated by Middlesex University.

Dimension Transfer Pricing International Taxation South African Tax Law
Jurisdictional audience Global audience, covers all jurisdictions Global audience, covers all jurisdictions South Africa specific, relevant to SADC region
Ideal for TP managers, advisors, in-house tax teams, analysts moving into TP Advisors and managers dealing with cross-border rules, treaties, planning Practitioners working with the SA Income Tax Act, cases, compliance
Core focus Methods, comparables, DEMPE, documentation, audits, dispute defence Treaties, source vs residence, anti-avoidance, PE, relief from double tax Statutory interpretation, case law, assessments, objections, local practice
Primary tools OECD TP Guidelines, UN Manual, BEPS Actions 8–10, 13, case law OECD and UN Models, MLI, BEPS 1.0 and 2.0, domestic rules, cases Income Tax Act, SARS practice notes, Tax Administration Act, SA cases
Assessment style Case-based assignments, file reviews, short written defences Problem questions, treaty interpretation, position papers Problem questions, statutory analysis, case commentary
Typical outcomes Build defensible TP files and strategies, improve audit readiness Design cross-border structures within rules, mitigate double tax Apply SA tax law accurately, manage reviews and disputes
Entry point Start with PG Certificate, progress to PG Diploma, then MSc, or enter later with suitable experience or credits.

Awards Ladder

Award Best for What you achieve Assessment highlights
PG Certificate Foundation to intermediate upskilling Core concepts, frameworks, and applied techniques Short case write ups, timed responses, applied tasks
PG Diploma Expanding technical depth and application Advanced analysis, risk management, documentation quality Integrated case assignments, policy memos, oral defence
MSc Leaders and specialists building authority Capstone project and research backed practice outcomes Research project, viva or presentation, publishable summary

IFF Certificate Courses

Practical, practitioner-led certificates designed for immediate on-the-job application. Each course can stand alone or act as a pathway into our postgraduate tracks.

Dimension Conducting a Transfer Pricing Trial Effectively Managing Tax Teams Indirect Taxation Tax Risk Management
Jurisdictional audience Global audience Global audience Global audience, with local adaptation Global audience
Ideal for In-house tax, TP managers, litigators, advisors preparing for audits, ADR, trial Heads of tax, managers, team leads, controllers, emerging leaders VAT, GST, customs, finance managers, AP, AR, compliance specialists Tax managers, risk officers, controllers, advisors building governance
Core focus Case theory, evidence files, expert reports, witness prep, courtroom strategy Operating models, KPIs, workflows, stakeholder management, coaching VAT design, place of supply, input credits, exemptions, WHT interactions Risk identification, controls, documentation, audit readiness, dispute playbooks
Delivery mode Online, live sessions plus guided self-study Online, live sessions plus guided self-study Online, live sessions plus guided self-study Online, live sessions plus guided self-study
Duration 16 weeks, part-time 16 weeks, part-time 16 weeks, part-time 16 weeks, part-time
Outcomes Confident litigation preparation and defence for TP disputes Stronger execution, clear roles, measurable team performance Reduced VAT errors, better cash flow, fewer surprises at audit Structured governance, fewer findings, faster dispute resolution
Prerequisites TP fundamentals recommended Supervisory experience helpful Basic VAT knowledge helpful General tax experience helpful
Pathway Progress to PG Certificate in Transfer Pricing Progress to Mechanics of Leading Tax Teams, PG Certificate (leadership) Progress to PG programmes, International Tax or SA Tax Law Progress to PG Certificate in International Taxation or Transfer Pricing
Assessment End of module progress assessment

5000-word assignment if PG-Cert option elected		 End of module progress assessment

5000-word assignment if PG-Cert option elected		 End of module progress assessment

5000-word assignment if PG-Cert option elected		 End of module progress assessment

5000-word assignment if PG-Cert option elected