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

The Australian Taxation Office (ATO) has published 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 framework set out in guidelines can be used to:

• Assess the compliance risk of the transfer pricing outcomes in accordance with the ATO's risk framework;
• Understand the compliance approach that the ATO will li…