Australia Won’t Appeal Its Loss in Alcoa Transfer Pricing Case

Australian tax authorities confirmed Tuesday that they won’t appeal a decision clearing a subsidiary of Alcoa Corp. of claims it owed millions in taxes on aluminum sales to a government-controlled smelter in Bahrain.

The country’s Administrative Review Tribunal had ruled April 30 that Alcoa of Australia Ltd. didn’t owe A$214 million ($138 million) in taxes because the payments it received for alumina weren’t less than the consideration it would have received on an arm’s-length basis.

The Australian Taxation Office will publish a statement on the decision’s impact, a spokesperson said in an email.

The arm’s-length principle requires related parties in ...