Australian Taxation Office publishes guidance on COVID-19 economic impacts on transfer pricing arrangements and altering related party arrangement

Executive summary

On 19 June 2020, the Australian Taxation Office (ATO) published new web guidance regarding the COVID-19 economic impacts on transfer pricing arrangements (link); and in a separate publication expressed concerns regarding businesses altering related party arrangements (link) to trigger deductions, reduce withholding tax, depress assessable income or assume global losses. Accordingly, altering transfer pricing positions and related party agreements may trigger significan…