RSM Australia

Transfer pricing services

Capital Markets and IPO support services

Transfer Pricing

Transfer Pricing is typically one of the most significant tax issues for multinational groups, given its subjectivity and the increasing concern of tax authorities worldwide to ensure profits are not inappropriately shifted through non-arm’s length pricing.

In many jurisdictions, this has been exemplified by tax authority scrutiny of a number of arrangements, including particularly intellectual property, financing, procurement/marketing hub arrangements, and a continued general focus to ensure that they are not missing out on their "fair share" of the overall value chain's profits.


However, Transfer Pricing risks cannot be considered simply from the perspective of one jurisdiction: adopting a conservative position in one jurisdiction will put pressure on transfer pricing risks in other jurisdictions.

As such, a holistic and balanced approach is required - as well as the exercise of sound professional judgment and expertise.

KEY CONTACTS

Liam Delahunty
Director - Sydney

E: [email protected]
T:+61 2 8226 4704


How can we help you?

RSM's approach to managing risk

Transfer Pricing Services

In light of this context, RSM's approach is to assist multinationals in establishing a transfer pricing policy that is "fit for purpose", so the global value chain is remunerated appropriately and the support for this is appropriately documented.

This has four key benefits:

  • Reducing or potentially eliminating the exposure to penalties from an adverse transfer pricing adjustment;
  • Providing a basis upon which groups can demonstrate they have complied with accounting standards relating to "uncertain tax positions", particularly AASB Interpretation;
  • Significantly reducing the internal work that would otherwise be required, in the event of tax authority audit if no documentation was available;
  • Evidencing sound corporate governance.

RSM’s approach seeks to identify the optimal way to achieve these objectives, whilst ensuring an appropriate balance between managing transfer pricing risks and incurring costs to do so.

RSM capabilities

Our global Transfer Pricing capabilities include:

  • Conducting risk assessments of existing Transfer Pricing arrangements
  • Advising on different Operating Models and their effectiveness/appropriateness
  • Preparing Transfer Pricing policy frameworks
  • Transfer Pricing policy implementation support services, including cost allocation studies
  • Preparing Transfer Pricing documentation
  • Managing Country-by-Country Reporting compliance obligations
  • Preparing Business Restructuring "support files" to substantiate restructurings
  • Reviewing legal agreements to ensure legal form aligns with economic substance, including cost sharing agreements
  • Assisting in seeking Advance Pricing Arrangements with tax authorities
  • Assisting in responding to tax authority reviews

Transfer Pricing

COVID considerations

With specific regard to the impact of COVID, we are also equipped to advise clients as to how they can legitimately vary their intra-group arrangements in order to share the impact of any disruption in financial performance, and to facilitate the preservation of cash.

Capital Markets

OECD's Annual Corporate Tax Statistics Publication

17 July 2020
The OECD has released the 2nd edition of its annual Corporate Tax Statistics publication.

Australia adopts OECD 2017 Transfer Pricing Guidelines

10 July 2020
Australia’s transfer pricing legislation has now imported the most recent updates to the OECD's Transfer Pricing Guidelines as published on 10 July 2017.

Transfer pricing issues during COVID-19

11 May 2020
The adverse impact of COVID-19 on a large number of businesses requires no introductory comment, as their focus turns to survival and cash preservation.

COVID-19 and transfer pricing issues: Potential JobKeeper Payment Implications

5 May 2020
COVID-19 has had a very adverse impact on the cash flows of many Australian businesses, who will be looking closely at the JobKeeper Payment regime and whether their turnover has declined by the requisite percentage. 

COVID-19 and transfer pricing issues: Financing

5 May 2020
COVID-19 has had a pervasive effect on business and one of the most salient is its impact on a company’s cash flow and funding arrangements.

New announcements to the 'JobKeeper Payments'

7 April 2020
In recent days, the Federal Government has made updates to the JobKeeper payment Fact Sheet, providing clarity surrounding eligibility for certain individuals and consolidated groups, and extending the eligibility criteria for eligible charities.

TA 2020/1 - Intangibles: Is your remuneration correct?

28 January 2020
The Australian Taxation Office (ATO) has released its first Taxpayer Alert of the decade in TA 2020/1, which identifies two principal concerns regarding intangibles:

Simplified Transfer Pricing Record Keeping (STPRK) options for loan

18 September 2019
On 11 September 2019, the ATO released an update to Practical Compliance Guideline (“PCG”) 2017/2, in respect of Simplified Transfer Pricing Record Keeping (“STPRK”) options for lower-risk transactions.

What foreign owners of residential property need to know about lodging their annual return

4 September 2018
In late 2017, the Australian Federal Government introduced an annual vacancy fee to be levied on  foreign owners of residential property, where the property is not occupied or generally available on the rental market for at least 6 months in a 12 month period. 

How the PM’s defeat impacts corporate tax rates

24 August 2018
Following the proposal for reduced tax rates for corporate entities in 2016, the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 (the Bill) was ultimately defeated in the Senate on 23 August 2018 by a vote of 36 to 30. 

Foreign incorporated companies and changes to the tax ruling - What you need to know.

20 August 2018
Most will remember the 2016 High Court ruling in the case of Bywater Investments Limited.

Reduced corporate tax rates - what rate of tax will my company pay?

27 July 2018
While the legislation is transitioning, some have been left confused about the application of reduced corporate tax rates and the details of eligibility criteria during this state of limbo. To provide some clarity, we take a closer look.

Fringe Benefits Tax – ATO finalise their position on private use of vehicles.

18 July 2018
New guidelines for private use exemptions of eligible motor vehicles for Fringe Benefits Tax (FBT) - ATO says yes to making a quick stop to grab a coffee (as long as it doesn’t add more than 2kms to your trip to work and is infrequent) but no to heading to cricket practice after work. 

R&D Tax Incentive Reform - Call for submissions

4 July 2018
R&D tax reforms, as announced in the 2018-19 Federal Budget, are steps closer to implementation with the Treasurer and Minister for Jobs and Innovation releasing draft legislation proposed to enact the changes. 

New GST withholding rules - what property purchasers and developers need to know

24 May 2018
The Federal Government has passed legislation that will require purchasers of new residential properties to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. The measures were first announced in last year’s Federal Budget. The legislation specifies: 

Budget falters on R&D tax (and how this impacts startups)

24 May 2018
It’s the third budget handed down by Treasurer Scott Morrison and for those of us in the innovation space, a whole lot to digest. After poring over the detail, I’ve created a summary of notable items for your reading pleasure (disclaimer: it’s not all pleasant).

ATO extends lodgement date for Country-by-Country Reporting

24 November 2017
The Australian Taxation Office (“ATO”) announced this week an extension of the due date for lodgement of the Country-by-Country report, master file and local file (collectively “CbCR”), from 31 December 2017 to 15 February 2018 for taxpayers with an income year ended on 31 December 2016.

Government Crackdown on Rental Property Deductions

21 July 2017
The Government announced in the 2017 Federal Budget that it would be making changes to the legislation regarding Rental Property Deductions under the guise of “reducing pressure on housing affordability”.

OECD releases revised Transfer Pricing Guidelines

17 July 2017
On 10 July 2017, the OECD released its revised OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations  in order to formally incorporate the most significant body of work ever undertaken by the OECD and its member (and indeed some non-member) countries regarding harmful international tax practices – the Base

Signing the Multilateral Instrument

6 June 2017
What happens if you threw a party and the guest of honour did not turn up? The international aspects of the G20/OECD’s Base Erosion and Profit Shifting (BEPS) project will become a reality at a treaty signing ceremony to be held in Paris, on 7 June 2017. 

Chevron Australia’s transfer pricing fight to go (at least) another round

22 May 2017
Chevron Australia has lodged the necessary paperwork with the Australian High Court registry, to apply for special leave to appeal against the Full Federal Court’s decision, in the long running and ground breaking transfer pricing litigation.

ATO releases draft transfer pricing guidance on international related party financing arrangements

17 May 2017
On 16 May 2017, the Australian Taxation Office (ATO) issued in draft form a Practical Compliance Guideline (PCG 2017/D4) outlining its proposed compliance approach to the transfer pricing implications arising from cross border ‘related party financing arrangements’ (RPFAs). 

The arguments and the Court's decision

3 May 2017
Australia wins gold in the international transfer pricing games The Commissioner’s arguments The Commissioner made determinations under both Division 13 and Subdivision 815-A, totalling approximately A$340m, based on his view that:

Detailed discussion of the facts

3 May 2017
Australia wins gold in the international transfer pricing games The facts

Australia wins gold in the international transfer pricing games

2 May 2017
Australia has shot to international prominence in the transfer pricing world following the Full Federal Court’s recent decision, dismissing the taxpayer’s appeal against the first instance decision in favour of the Australian Tax Office (ATO): Chevron Australia Holdings Pty Ltd v Commissioner of Taxation [2017] FCAFC 62

Australia’s Diverted Profits Tax now a reality

28 March 2017
The Bill introducing Australia’s version of the Diverted Profits Tax (DPT) completed its passage through the Parliamentary process on Monday, 27 March 2017, and now awaits Royal Assent before becoming law.

Budget 2016 for International Businesses

3 May 2016
Key announcements The Government has announced it will strengthen the anti-avoidance measures for multinationals recently legislated and previously announced in the 2015/16 Federal Budget by introducing the following additional measures:

Budget 2016 for Corporations

3 May 2016
Cuts to Company Tax Rate The company tax rate will be reduced to 25% over the next 10 years. The company tax rate will be progressively reduced to 25% between the 2016/17 and 2026/27 income years.

BEPS: New Australian Developments

24 November 2015
BEPS Action 2: Board of Tax releases anti-hybrid discussion paper

BEPS: final global sign-off

24 November 2015
G20 Leaders endorsement

Simplified transfer pricing record keeping for SMEs

16 October 2015
Spreading Christmas cheer (with a healthy dose of caution required) 

Company taxpayers: are you ready for the public disclosure of your tax data?

4 October 2015
Since tax was first collected, a fundamental feature of tax law has been the unconditional secrecy surrounding taxpayer data. In Australia that position changed in June 2013 when Australia’s tax secrecy laws were amended, directing the ATO to publicly report certain large company tax data.

Legislative developments and progress on transfer pricing documentation

14 January 2015
The reformation process of Australia's transfer pricing regime that commenced in November 2011 has continued apace in 2014. 2015 is also likely to be a year of significant change.