Global

Details

  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/28/2014

Australia - Corporate officers must attest to arm’s length transactions 

August 28: Public officers responsible for signing Australian corporate tax returns are now required—on a self-assessment basis—to sign off on their company’s transfer pricing arrangements.

Australia’s new transfer pricing rules (contained within Subdivision 815-B of the Income Tax Assessment Act 1997, and Subdivision 284-E in Schedule 1 to the Taxation Administration Act 1953) provide that public officers responsible for signing Australian corporation tax returns, containing an international dealings schedule, must sign off on the transfer pricing arrangements, under a self-assessment basis—a first in relation to transfer pricing.


Accordingly, a public officer must be satisfied that the company has met the requirements of Subdivision 815-B—requirements that are more onerous than in the legislation it replaced. For example, the new rules require a public officer to be satisfied that the actual conditions surrounding the company’s international dealings are consistent with those that would occur between unrelated parties acting at arm’s length.

KPMG observation

The task required to be undertaken by a public officer responsible for signing the corporate income tax return in the context of self-assessment is very similar in scope to the higher standard of transfer pricing documentation required by the new legislation. Still, companies may want to view this new standard as an opportunity to get their transfer pricing policies and documentation in order.


Read an August 2014 report prepared by the KPMG member firm in Australia: Australian transfer pricing, a new obligation for Public Officers...?



Contact a tax professional with KPMG's Global Transfer Pricing Services.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now