• International related party dealings and transfer pricing

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    A Did the fund have any transactions or dealings with international related parties, irrespective of whether they were on revenue or capital account?

    Print X in the appropriate box.

    International related parties are persons, including permanent establishments, who are parties to international dealings that can be subject to:

    • Division 13 of the ITAA 1936, or the business profits article, or
    • associated enterprises article, of a relevant double tax agreement. International related parties include:
      • any overseas entity or person who participates directly or indirectly in the fund's management, control or capital
      • any overseas entity or person in respect of which the fund participates directly or indirectly in the management, control or capital
      • any overseas entity or person in respect of which persons who participate directly or indirectly in its management, control or capital are the same persons who participate directly or indirectly in the fund's management, control or capital
      • a permanent establishment and its head office
      • two permanent establishments of the same person.
       

    'Participates' includes a right of participation, the exercise of which is contingent on an agreed event occurring and 'person' has the same meaning as in section 6 (1) of the ITAA 1936 and section 995-1 of the ITAA 1997.

    The type of dealings or transactions that will require the fund to select Yes at this question are dealings by the entity with related parties as above, such as an overseas holding company, overseas subsidiary, overseas permanent establishment of the entity, or non-resident trust in which the entity has an interest.

    These dealings or transactions may be the provision or receipt of services, or transactions in which money or property has been sent out of Australia, or received in Australia from an overseas source during the income year. The dealings may also include the transfer of tangible or intangible property, provision or receipt of services, or the provision or receipt of loans or financial services.

    If money or property is not actually sent out of Australia or received in Australia, but accounting entries are made that have the effect of money or property being transferred, this is also to be taken as an international transaction.

    Attention

    If the fund paid to, or received dividends (including non-share dividends) from, a related overseas entity and those dividends were the only transactions with related overseas entities, select No at this label in respect of overseas transactions and do not complete section A of Schedule 25A 2009.

    End of attention

    B Was the aggregate amount of the transactions or dealings with international related parties (including the value of property transferred or the balance outstanding on any loans) greater than $1 million?

    Print X in the appropriate box.

    The aggregate amount of the dealings is the total amount of all dealings, whether on revenue or capital account, and includes the balance of any loans or borrowings outstanding with international related parties.

    Transactions must not be netted off against each other. Hence, a $600,000 purchase from and a $700,000 sale to a related party should be treated as totalling $1,300,000 not $100,000.

    If the answer at B is Yes, complete section A of Schedule 25A 2009, together with any other relevant part or schedule, and attach the completed Schedule 25A to the tax return.

    Last modified: 25 Nov 2009QC 21714