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  • Draft guidance on transfer pricing issues published

    We’ve recently issued Draft Schedule 2 to Practical Compliance Guideline (PCG) 2017/1 ATO compliance approach to transfer pricing issues related to centralised operating models involving procurement, marketing, sales and distribution functions.

    This draft guidance:

    • assists taxpayers to comply with their transfer pricing obligations
    • allows taxpayers to self-assess the transfer pricing risk for certain types of purchases they make from a related-party offshore hub
    • helps taxpayers understand our view and our likely compliance response to their transfer pricing arrangements, in particular those dealings that are at a higher risk of shifting excessive profits to a low-tax jurisdiction.

    The draft guidance gives taxpayers increased certainty over the risk profile of their commercial activities. It gives a practical administrative approach about how taxpayers can best meet their tax obligations while minimising their costs of compliance.

    You can provide comments to offshorehubs@ato.gov.au until 27 July 2018.

    Find out more:

    • PCG 2017/1 ATO compliance approach to transfer pricing issues related to centralised operating models involving procurement, marketing, sales and distribution functions
      Last modified: 09 Jul 2018QC 56207