Australian Transfer Pricing Alert:

Australian Transfer Pricing Alert - Diverted Profits Tax

22 December 2016

Zara Ritchie , Head of Global Transfer Pricing Services Australian Lead Partner |

The recently released draft legislation to implement the proposed Diverted Profits Tax (DPT) has proposed significant changes to the Australian transfer pricing landscape – in particular the proposed implementation of a ‘pay now, argue later’ approach to the proposed punitive 40 per cent tax rate.

It is therefore now more critical than ever for taxpayers who fall within the ambit of the DPT to ensure that appropriate and contemporaneous transfer pricing documentation is in place to support the transfer pricing and BEPS-related aspects of any international related party transactions.