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Last updated 21 April 2020

For the purposes of the local file, we are adopting the definitions of international related party (IRP) and international related party dealings (IRPD) as used in the international dealings schedule (IDS).

International related parties are persons who are not dealing wholly independently with one another in their commercial or financial relations and whose dealings or relations can be subject to Subdivision 815-B of the Income Tax Assessment Act 1997 (ITAA 1997) or the associated enterprises article of a relevant double tax agreement (DTA).

There cannot be a transfer pricing benefit under subsection 815-120(1) or pursuant to Article 9 of a relevant tax treaty if the conditions of a relevant entity’s commercial or financial dealings are inherently not capable of affecting the amount of the entity’s taxable income, losses, tax offsets or withholding tax under Australian income tax law.