Double Penalties for Tax Avoidance and Transfer Pricing Schemes

The Australian Treasury released an exposure draft bill to impose stronger penalties to combat tax avoidance and profit shifting. The draft legislation will apply to companies with annual global revenue exceeding AU$1 billion that are obliged to comply with the Country by Country (CbC) reporting.

Taxpayers failing to comply with the CbC reporting on time will result in late lodgement penalties. Double penalties will be imposed to taxpayers that do not have a reasonable arguable position (e.g. transfer pricing documentation). Increased penalties apply to any scheme benefit an entity gets on or after 1 July 2015, regardless of when the scheme was entered into.

This draft legislation significantly increases the importance of having transfer pricing documentation that can provide a RAP under Subdivision 284-E.

For more information about these penalties please contact Transfer Pricing Solutions on admin@transferpricingsolutions.com.au www.transferpricingsolutions.com.au.

Transfer Pricing Solutions is finalist to Asia Tax Awards 2017

10 Mar '17

Australia Transfer Pricing Firm of the Year • Singapore Transfer Pricing Firm of the Year • Best Newcomer of the Year, Transfer Pricing Solutions Asia • Asia Transfer Pricing Practice Leader of the Year, Shannon Smit

New Legislation introduces new transfer pricing documentation standards and other anti-avoidance measures

7 Dec '15

On 3 December the federal government passed the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015. The Bill implements the recent guidance set by the OECD as part of its Base Erosion and Profit Shifting (BEPS) initiative with respect to Action Plan 13 by introducing a new transfer pricing standard.

Further ATO guidance on the application of the Simplifying Transfer Pricing Record Keeping (STPR) options

1 Dec '15

On 26 November the ATO provided further guidance on the application of the STPR options in the form of Frequently Asked Questions (FAQ). In the document, the ATO emphasises on the importance of demonstrating compliance with Australia’s transfer pricing rules, even when applying the STPR options.

Double Penalties for Tax Avoidance and Transfer Pricing Schemes

Other Recent Posts

Transfer Pricing Solutions is finalist to Asia Tax Awards 2017

New Legislation introduces new transfer pricing documentation standards and other anti-avoidance measures

Further ATO guidance on the application of the Simplifying Transfer Pricing Record Keeping (STPR) options

Subscribe