The Australian Taxation Office (ATO) has published a draft update to 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 draft update included 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 procurement hub…