Reasons for Decision
Company C enters into a forward sale agreement with a counterparty (an arms length merchant bank). All negotiations and decisions to enter into forward sales agreements are taken outside Australia. The forward sales agreements are made outside Australia. 2. Company C acquires the commodity from companies resident in Australia. The contract for acquisition of the commodity by Company C from the resident companies is made in Australia. Title to the commodity passes in Australia. In the case of sales of the raw material, title passes outside Australia. 3. Company C pays the resident companies for the commodity it buys. The resident companies are paid for the commodity into their Australian bank accounts. 4. Company C delivers the commodity to the counterparty. The commodity is delivered to the counterparty outside of Australia. Title passes outside Australia. 5. Company C is paid for the commodity it delivers. Company C is paid outside Australia.