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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 arm's length 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, 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 have regard to the extent and quality of the documentation kept.
    Last modified: 24 Jul 2018QC 17107