You have a non-Australian company selling products and/or services directly to the Australian market. To facilitate the sales, you have set up a subsidiary in Australia to provide various auxiliary services to your company.
The proceeds from the sales are retained by the non-Australian company which in turn pays the Australian subsidiary on a cost plus basis for the auxiliary services.
Sounds like you?
Lets talk TP and MAAL for Australia.
Australia has stepped up on the reviewing of TP methods and documentation. As such, careful deliberation must be exercised when selecting the most suitable TP method..
If you're an Australian company currently claiming tax deductions for cross-border payments then you MUST consider the imported mismatch
If your business is engaged in international dealings with related parties, and has more than $2 million of related-party dealings, you are required to complete an international dealings schedule (IDS) and lodge it with your income tax return for that year.