iscoverThe ATO has released draft guidance for taxpayers on transfer pricing rules introduced in June 2013.
ATO releases draft guidance on transfer pricing rules
16 April 2014
•
4 minute read
Assistant commissioner Michael Jenkins said that consultation with transfer pricing practitioners and other stakeholders had highlighted the need for specific guidance on how the ATO would apply the new rules.
“There are three areas in particular where taxpayers require guidance: documentation requirements under the new rules, the new penalty provisions; and as set out in section 815-130, the circumstances when it is appropriate to focus on and price the ‘economic substance’ of a particular arrangement or transaction when the economic substance does not match the legal form agreed by the parties,” he said.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
The new transfer pricing rules, set out in subdivision 815-B of the Income Tax Assessment Act (ITAA) 1997, replace the former provisions that existed under Division 13 of the Income Tax Assessment Act 1936 and Subdivision 815-A of the ITAA 1997.
“We want to make sure that taxpayers have adequate guidance to apply the new transfer pricing rules to their own circumstances and manage their own risks – particularly as the new provisions require taxpayers to self-assess their position,” Mr Jenkins explained.
The ATO is encouraging stakeholders to provide feedback on the draft rulings and practice statements by 30 May 2014.
During the consultation period, the ATO will also hold seminars for tax practitioners working in the mid-tier space.
You need to be a member to post comments. Become a member for free today!
