Transfer Pricing - Schedule 25A
Published on 01 May 2008
| Took place at Kooyong Tennis Club, Melbourne, VIC
As part of their annual tax return Australian companies with related party transactions are required to disclose details surrounding their dealings with international related parties on the Schedule 25A. The Schedule is used by the ATO as a key part of its transfer pricing risk profiling and risk assessment activities.
The ‘first step’ in the ATO’s transfer pricing compliance activities comprises a comprehensive desk-based risk profiling exercise relying heavily on data provided by companies as part of their Schedule 25A disclosures. The form of companies’ responses to specific questions on the Schedule 25A can influence the ATO’s assessment of the relative level of transfer pricing risk at the company level.
This practical session explained how the ATO uses the Schedule 25A in its transfer pricing risk profiling activities, and gave practical tips on how to complete the Schedule.