Australia to Update Transfer Pricing Guide for Imported Goods

Australia is working on updating its guidance on transfer pricing risks for companies importing foreign products and digital services.

The Australian Taxation Office aims to update by December a benchmarking tool it uses to assess transfer pricing risk and introduce a low-risk “white zone” for certain taxpayers.

ATO rates risk via “profit markers,” a ranking of distributing companies’ earnings before interest and taxes. The markers rate risk for the industry sector in which the inbound distributor operates and the individual company accordingly.

The update would ensure the profit markers “remain relevant and up to date,” the ATO said.

• The updated ...