Australia Updates Transfer Pricing Guide on Offshore Procurement, Marketing, Sales, and Distribution Hubs

On 11 October 2018, the Australian Taxation Office published an updated version of the Practical Compliance Guideline (PCG) 2017/1, which covers the ATO's compliance approach to transfer pricing issues related to centralized operating models involving procurement, marketing, sales and distribution functions ("hubs"). The main update is the addition of a new Schedule 2 - Offshore Non-Core Procurement Hub Arrangements.

Schedule 2 sets out the ATO's risk assessment framework for offshore procu…