Item 6 - arm's length pricing - non revenue

This item is concerned with any non-revenue dealings that have occurred between you and an international related party. These dealings are those that you would have included at items 2a to 2d, but not those which concern trading stock in the ordinary course of business.

Item 6a

During the income year, did you have any related-party international dealings of a non-revenue (capital) nature referred to in items 2a to 2d in which:

  • you acquired an interest in an asset, or
  • a capital gains tax event occurred (including disposal).

The words 'acquired', 'capital gains tax event', 'CGT event', 'disposal' and 'asset' are used in this item within the context of Part 3-1 of the Income Tax Assessment Act 1997 (ITAA 1997). This item does not refer to trading stock held in the ordinary course of business.

This item requires either Y for yes or N for no. If you print N for no at item 6a, disregard items 6b and 6c and go to item 7.

Item 6b

Where you have acquired capital assets from, or have disposed of capital assets to international related parties, use the correct pricing method code to indicate the four principal methods you used for pricing those acquisitions or disposals.

Record the methods you used by placing the appropriate codes at label Q in descending order of total dollar value, starting at the left hand side.

Item 6c

This item requires you to identify the percentage of your related-party international dealings that are capital in nature.

Use the codes in the table below to show the total international related-party acquisitions and disposals of capital assets as a percentage of the total value of related-party international dealings of both a revenue and non-revenue (or capital) nature. Print the code at R.

Total of related-party acquisitions and disposals as a percentage of the total of related-party dealings - items 2a to 2d only





1% to less than 25%


25% to less than 50%


50% to less than 75%


75% to less than 100%




You can estimate the percentage provided the estimate is objectively and rationally determined using, for example, a sampling technique based on accepted statistical methods. Keep your working papers that relate to item 6c.

    Last modified: 21 Feb 2012QC 25356