New simplified transfer pricing record keeping options

We have introduced three additional simplified record keeping options for eligible businesses subject to transfer pricing provisions.

The current transfer pricing regime includes Subdivision 284-E documentation requirements that may impose an administrative burden on a business disproportionate to its risk of not complying with the transfer pricing rules. The options aim to help businesses, with low non-compliance risks, to comply while minimising their record keeping and compliance costs.

Small taxpayers, distributors, intra-group services, and inbound low level loans options are available for a three year trial period from 29 June 2013. The following new options will be available for a three year trial period from 1 July 2015:

  • materiality
  • management and administration services
  • technical services.

The selection and disclosure of an option(s) will ensure that relevant transfer pricing dealings will not be subject to review.

If you are applying one of the options, PSLA 2014/3 advises you of the requirements of ATO officers considering compliance action.

For more information on the simplified options, including eligibility and requirements, refer to Simplifying transfer pricing record keeping.

See also:

    Last modified: 21 Jan 2016QC 47841