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  • Documentation requirements

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

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

    There are sound practical reasons why you should adequately document compliance with the arm's length principle, namely:

    • to reduce the risk of audit by us, and dispute with us
    • to help explain your position to us
    • to 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: 04 Dec 2018QC 17107