The Australian Taxation Office (ATO) has released a Transfer Pricing (TP) ruling outlining its views on the application of record keeping provisions. KPMG's Transfer Pricing Update provides you with a summary of the ATO's record keeping provisions and simplification guidance.
The new ruling provides useful guidance for taxpayers and generally aligns with the increased transfer pricing expectations that multinational companies are facing globally.
Taxpayers that rely on global documents that are prepared in accordance to the Organisation for Economic Co-operation and Development (OECD) standard should consider whether the Australian documentation requirements are fully addressed.
It is important that eligible taxpayers continue to monitor their transfer pricing arrangements and their ongoing eligibility for the documentation concession each year.