Australia’s strict transfer pricing rules have been tightened, with the ATO increasing focus on this area. Receive expert support from Accru Felsers.
Master the art of Transfer Pricing
Has the tightening grip of Australian transfer pricing rules given you a financial headache? Do the words “arm’s length principle” make your head spin? With recent law changes, it’s imperative that you get your transfer pricing right! We’re here to guide you through this complex process.
Imagine selling your used car to a friend, you wouldn’t sell it far below market value, right? Same goes for selling goods to your overseas partners (also known as related international parties). The prices should mimic what independent businesses would normally charge. If your business stands out in your industry, tax authorities might step in and give your taxable income a bit of a makeover.
If you’re a globetrotter in the business world, things get even more complicated. You must record all those cross-border transactions with your partners to be in every country’s tax good books.
Navigating the Australian Transfer Pricing terrain
In our country, global companies have to maintain a neat file of their transfer pricing strategies (also known as “Transfer Pricing Manuals,” or “Transfer Pricing Studies”). They include pulling data from databases of similar trading info and jotting down specifics of Australian tax laws.
Plus, if your transactions with international partners cross the $2 million mark, you’ll need to disclose this in an International Dealings Schedule (IDS). Think of it as part of your annual tax return. For the big fish, there’s the annual CbC Reporting obligations. But beware, the tax department could show up anytime for a review, so keep your IDS and Transfer Pricing Manual in order.
Passing the ‘arm’s length’ test
Figuring out if your business transactions meet this “arm’s length” standard might seem as difficult as climbing Mount Everest. But don’t worry, that’s where we step in. Our Transfer Pricing Services give you the keys to comprehensive databases. We have a treasure trove of financial data from countless companies across industries and regions.
Our strategy for effective Transfer Pricing
For over twenty years, we have been setting the pace in Australian transfer pricing services. Our manuals not only explain the strategies used to compare pricing, but they also show how your company’s pricing compares to the “arm’s length” standard. And yes, they’ve got all you need to meet the tax man’s requirements.
Our team of transfer pricing masters have wrestled with ATO transfer pricing reviews and scored winning Advance Pricing Agreements (APAs). They’ll walk you through the labyrinth of transfer pricing rules and have your back against any claims during an ATO review.
And get this – our transfer pricing strategy will help you identify strategic ways to arrange your international transactions and make pricing calls based on what truly counts in your business.
Our Transfer Pricing toolkit
Crafting & reviewing Transfer Pricing documentation
Think of us as your personal bookkeeper, regularly updating your transfer pricing records to meet Australian standards. We’ll also whip up and review your International Dealings Schedule (IDS) and necessary disclosures.
Sculpting Transfer Pricing plans & strategies
We use third-party databases to create, test, and evaluate your transfer pricing methods, policies, and structures. We’ll also assess and plan your tax tactics from a transfer pricing angle, whether locally, nationally, or globally.
Tackling tax office audits & resolving disputes
If the tax man comes knocking for audits or dispute resolution, we’ve got your back. We’ll provide guidance, draft letters, and defend your transfer pricing methods and documents. We can also help secure an Advance Pricing Agreement (APA) with both local and international tax authorities.