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  • Question 12 Other dealings of a revenue nature

    This question asks whether you had international related party dealings of a revenue nature, apart from the dealings covered in questions 5 to 11.

    Do not show at Question 12 any dividends or other distributions of profit on ordinary shares or equity interests of a non-revenue nature.

    The dollar amounts or values asked for in this question are all based on your accounting records.

    We expect the majority of international related party dealings entered into by taxpayers to come within the types of dealings covered by questions 5 to 11.

    An international related party dealing of a revenue nature that you included at questions 5 to 11 should not be included at this question regardless of whether it was reported at questions 5 to 11 using tax or accounting figures.

    Amounts included in your answers to questions 2 to 4 may be included again at questions 5 to 11.

    If you had international related party dealings of a revenue nature, apart from the dealings covered in questions 5 to 11 answer Yes at A item 12 and complete the following:

    • At C, write the total amount of expenditure incurred with respect to these other kinds of international related party dealings of a revenue nature,

    Do not show at C item 12 any dividends or other distributions of profit paid on ordinary shares or equity interests of a non-revenue nature.

    • At D, write the total amount of revenue earned or derived in respect of these other kinds of international related party dealings of a revenue nature.,

    Do not show at D item 12 any dividends or other distributions of profit received on ordinary shares or equity interests of a non-revenue nature.

    Where the related party dealings involve assets, which are not trading stock, acquired for the purpose of disposal and held on revenue account for income tax purposes, you should show at item 12 the net profit or loss. Don’t show the gross proceeds of disposal or gross acquisition costs.

    • At E, write the Appendix 5 code for the principal arm's length pricing method used to set or review the consideration for these other kinds of international related party dealings of a revenue nature.
    • At F, write the Appendix 9 code for the percentage of these other kinds of international related party dealings of a revenue nature for which you have documentation.

      Percentage of dealings with documentation refers to the aggregate dollar amount of transactions reported at this question for which you have relevant documentation expressed as a percentage of total dollar value of transactions reported at this question.
    • At H, write a description of the principal activity undertaken in these other kinds of international related party dealings of a revenue nature. You should limit your description to 200 characters.

    Example 10

    An Australian taxpayer has identified that the following international related party dealings of a revenue nature took place during the income year that are not covered by questions 5 to 11. The taxpayer has relevant documentation for 85% of the dealings.

    Nature of dealing: Consumables

    Country

    Expenditure
    $

    Revenue
    $

    Pricing methodology code

    United States

    420,000

    0

    1

    New Zealand

    0

    170,000

    3

    Total

    420,000

    170,000

    na

    Nature of dealing: Excess equipment

    Country

    Expenditure
    $

    Revenue
    $

    Pricing methodology code

    New Zealand

    0

    350,000

    1

    Total

    0

    350,000

    na

    With this information the Australian taxpayer completes question 12 as follows:

    This image is showing an example of completing Question 12. Question 12 Other Label C Expenditure: $420,000 Label D Revenue: $520,000 Label E Main pricing methodology: 1 Label F Percentage of dealings with documentation code: 5 LAbel H Description: Consumables, revenue

    End of example
    Last modified: 08 Feb 2022QC 64900