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  • Documentation requirements

    You must keep documentation that can substantiate compliance with the arm's length principle.

    Taxation Ruling TR 2014/8 Income tax: transfer pricing documentation and Subdivision 284-E provides information on how to demonstrate that you have complied with the principle.

    There are reasons why you must document compliance with the arm's length principle, namely to:

    • reduce the risk of audit by us, and dispute with us
    • help explain your position to us
    • minimise penalties in the event of an audit adjustment, as any penalties will take into account the extent and quality of the documentation kept.
      Last modified: 17 Nov 2022QC 17107