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The court upheld the primary judge’s rejection of STAI’s reliance on US bond rates to determine the arm’s length interest rate. The court agreed this “hypothesis” “departed too far” from the actual LNIA transaction, which was an intra-group vendor financing arrangement not an...
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The use of the one-year BBSW for the earlier years respects the floating rate nature of the LNIA under the second amendment but overstates the government bond rate if short-term government bond rates are less than the interbank rate. The use of 5.6143 percent is puzzling as this rate refle...