The recently enacted Cross Border Transfer Pricing legislation imposes a higher obligation on Public Officers of companies to maintain appropriate TP documentation on a contemporaneous basis to defer and defend ATO investigation. Cross border financing, business restructures and profit based assessments where a business has consistently low profits or losses are likely ATO targets.
This practical paper provides guidance on how to develop a framework to adapt to this new TP environment including:
- ensuring your company’s TP documentation meets the ATO requirements of a reasonably arguable position to avoid automatic penalties should an audit adjustment arise
- impact on IDS disclosure and your company’s risk profile
- limitation on period for ATO to amend
- personal liability of public officers for penalties arising from a false or misleading statements related to TP.