If your business is engaged in international dealings with related parties and has more than $2 million of related-party dealings, you are required to complete an international dealings schedule (IDS) and lodge it with your income tax return for that year.
The IDS imposes obligations to disclose information about related-party international dealings, including:
- the nature and amount of certain categories of transactions
- details of dealings of a financial nature
- receipts or payments of non-monetary consideration
- details of restructuring events
- details of arm's length methodologies used
- the level of documentation held to support the selection and application of the most appropriate arm's length methodologies
- details of disposals or acquisitions of any interest in a capital asset.
The IDS allows you to notify us if you are eligible and choosing to adopt any of the simplified transfer pricing record-keeping options.
The IDS may change from year to year, so make sure you check the schedule and accompanying instructions for the income year you are addressing. You will need to refer to Schedule 25A for relevant income years prior to 2011–12.
We will publish instructions each year to help businesses complete their IDS.
Take care when completing your IDS. We use the information provided to help identify businesses that may pose a transfer pricing risk. If you fail to complete an IDS where required, you may incur penalties or be prosecuted.
For more information about the application of Australia's transfer pricing provisions in Division 13 of Part III (Division 13) of the Income Tax Assessment Act 1936 (ITAA 1936) and the Associated Enterprises Article of Australia's tax treaties (treaty Article 9) of the International Agreements Act 1953 (Agreements Act) to business restructuring arrangements, see Taxation Ruling TR 2011/1 Income tax: application of the transfer pricing provisions to business restructuring by multinational enterprises.