Taxpayer alert – offshore procurement hubs
We have released a Taxpayer alert on arrangements involving the use of offshore entities which source goods (procurement hub) on behalf of Australian resident multi-national enterprises.
In these arrangements, the procurement hub receives services from a related offshore entity (services hub). There is little or no commercial justification for the separation of the procurement function into two separate entities.
We are currently reviewing these arrangements and have commenced compliance activities in relation to a number of cases. If you have entered into, or are contemplating entering into a similar arrangement, you're encouraged to seek independent advice, review your arrangement or discuss your situation with us by emailing email@example.com.
We have released a Taxpayer alert on arrangements involving offshore procurement hubs.