Grant Thornton Australia

Grant Thornton uses cookies to monitor the performance of this website and improve user experience. If you are happy to accept cookies from this site, please check the box. To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

How to be COVIDSafe when visiting Grant Thornton offices. Find out how

Global site
  • Global site
  • Africa
  • Americas
  • Asia Pacific
  • Europe
  • Middle East
Grant Thorton Logo
Grant Thornton Logo Grant Thornton Logo
  • Skip to content
  • Skip to navigation
Contact us
Close Global search
  • Insights
  • Services
  • Industries
  • Meet our people
  • Careers
  • News centre
  • Locations
  • About us
  • Audit
  • Tax
  • Risk
  • Forensics
  • Deals
  • Finance and funding
  • Insolvency
  • Restructuring and turnaround
  • Business services
  • Consulting

  • Market services
  • Asia
  • Indigenous advisory
Audit Home
  • Compliance audits & reviews
  • Audit quality
  • Financial reporting advisory
  • Audit advisory
Insight How not-for-profit organisations can shift from ‘survival mode’ into sustainability
We saw COVID threaten the sustainability for many not-for-profit (NFP) organisations, forcing some to make operational changes or to shut their doors, and others to adapt and drive innovation to achieve their mission. But what does it mean to be a sustainable NFP, and how do these organisations then remain sustainable for years to come?
Tax Home
  • Corporate tax & advisory
  • Private business tax & advisory
  • Tax compliance
  • Employment tax
  • International tax
  • GST, stamp duty & indirect tax
  • Tax law
  • Research and development & government incentives
  • Transfer pricing
  • Data transformation and analytics
  • Corporate simplification
Podcast New South Wales dips it’s toes in tax reform
The New South Wales State Government has been busy with tax reform this year – from the raft of state taxation amendments commencing in May, to the first steps to abolish stamp duty introduced as part of their state budget last week.
Risk Home
  • Payroll assurance
  • Cyber resilience
  • Internal audit
  • Financial crime
  • Consumer Data Right
  • Risk management
  • Controls assurance
  • Governance
  • Regulatory compliance
Client alert Three weeks remaining for Queensland builders to comply with QBCC's Minimum Financial Reporting Requirements
With only 3 weeks remaining in the financial year, builders should immediately test their compliance with the Queensland Building and Construction Commission’s (QBCC) Minimum Financial Reporting Requirements (MFR) to ensure there is enough time to rectify any deficiencies before FY22/23 year end.
Forensics Home
  • Forensic accounting and dispute advisory
  • Investigations
  • Digital forensics
  • eDiscovery
Insight Implications of Division 7A on family settlements
Hearing the words ‘Division 7A’ is often accompanied with a twinge of anxiety – and for good reason. This area of tax legislation is incredibly complex, and for family businesses, Division 7A can be a particularly difficult concept to navigate.
Deals Home
  • Mergers and acquisitions
  • Acquisition search & strategy
  • Divestments
  • Operational deal services
  • Transaction advisory
  • Business valuations
  • Tax in mergers & acquisition
Insight Tax in M&A: Questions to ask your business and deal team
While Australia has shown strong acquirer appetite and businesses from all industries are finding great success and outstanding returns with their acquisition and divestment strategies, M&A activity now faces an uncertain future.
Finance and funding Home
  • Corporate finance
  • Debt advisory
  • Working capital optimisation
  • Capital markets
  • Capital raising
  • Private equity
  • Financial modelling
  • Payments advisory
Insight Tax in M&A: Questions to ask your business and deal team
While Australia has shown strong acquirer appetite and businesses from all industries are finding great success and outstanding returns with their acquisition and divestment strategies, M&A activity now faces an uncertain future.
Insolvency Home
  • Voluntary administration & DOCA
  • Corporate insolvency & liquidation
  • Complex and international insolvency
  • Safe Harbour advisory
  • Bankruptcy and personal insolvency
  • Creditor advisory services
  • Small business restructuring process
Client alert Can your business leverage the Small Business Restructure process to clean up old debt?
As the economy continues to battle ongoing waves of COVID-19, businesses who are struggling to pay legacy debts may be left wondering what their future might look like.
Restructuring and turnaround Home
  • Independent business reviews
  • Commercial performance
  • Safe Harbour advisory
  • Corporate simplification
  • Director advisory services
  • Debt advisory
Client alert ATO puts up to 50,000 taxpayers on alert for looming Director Penalty Notices
On 28 March, the ATO sent its strongest message on debt enforcement since the COVID-19 pandemic commenced, advising that it is now issuing letters to taxpayers informing them about their potential personal liability for company tax debts under the Director Penalty Notice (DPN) programme.
Business services Home
  • Business planning & strategy
  • Private business company secretarial services
  • Outsourced accounting services
  • Superannuation and SMSF
  • Management reporting
  • Financial reporting
  • Forecasting & budgeting
  • ATO audit support
  • Family business consulting
  • Private business taxation and structuring
  • Outsourced CFO services
Consulting Home
  • Management consulting
  • Financial consulting
Insight Top 5 issues for CFOs in 2022
Living through the pandemic has delivered a clear reminder that some things are simply beyond our forecasting or our control. That’s the kind of wildcard CFOs can do without! CFOs are in the box seat with a once-in-a-career opportunity to create a whole new – and ideally improved – business ‘normal’ by considering talent, digital transformation, cyber resilience, post-pandemic growth, diversity and inclusion.
Asia Home
  • China
  • India
  • Japan
  • Case study: Restructuring solutions
  • Agribusiness, Food & Beverage
  • Energy & Resources
  • Financial Services
  • Health & Aged Care
  • Life Sciences
  • Manufacturing
  • Not for Profit
  • Professional Services
  • Real Estate & Construction
  • Retail & Consumer Products
  • Technology, Media & Telecommunications
Agribusiness, Food & Beverage Home
Client alert Fair Work Ombudsman releases its strategic priorities and key industry focus for FY23
The Fair Work Ombudsman (FWO) has announced its strategic priorities for 2022-23 including where audit and enforcement activities will be undertaken in relation to wage underpayments.
Energy & Resources Home
Guidebook A guide to transition from exploration to development and production
A deep dive into the accounting, tax and finance implications as you transition from exploration through development and ultimately, production.
Financial Services Home
Insight Holding banking to account: the real diversity and inclusion picture
We discussed some of the key findings of our Women in Business research with female industry leaders across our global Grant Thornton network, exploring how the banking sector can keep the momentum going to attract, retain and nurture women to build a more inclusive future.
Health & Aged Care Home
CLIENT ALERT $2bn Breakthrough Victoria Fund, now investing in research, technology and innovation
The $2bn Breakthrough Victoria Fund will consider a range of investments from $500,000 to $30 million for projects across four funding streams, with a flexible approach to investment depending on the opportunity. A wide range of businesses, research organisations, universities, joint venture and consortia are encouraged to apply.
Manufacturing Home
Insight Investment into innovation encouraging stability in manufacturing
Australian manufacturers have been through difficult times, particularly with the shutdown of the automotive industry, but remaining businesses are proving to be agile and resilient having already battled through lots of challenges. In addition, the accelerating pace of new technologies being introduced, combined with COVID-19 disruption and the Government’s substantial industry support, many manufacturing business models have been fundamentally challenged for the better.
Not for Profit Home
Insight How not-for-profit organisations can shift from ‘survival mode’ into sustainability
We saw COVID threaten the sustainability for many not-for-profit (NFP) organisations, forcing some to make operational changes or to shut their doors, and others to adapt and drive innovation to achieve their mission. But what does it mean to be a sustainable NFP, and how do these organisations then remain sustainable for years to come?
Professional Services Home
Client alert Professional services – is it time for our Owner’s Room?
Professional service firms have experienced growth and increased profitability over the last two years. The issue of succession – promoting, attracting and managing the retirement of equity participants – has never been more challenging.
Real Estate & Construction Home
Client Alert GST and changes in use of residential premises
As the financial year draws to a close, now is the time for property developers to review their projects and determine whether there has been a change of intended or actual use of any residential premises which may require a GST adjustment under Division 129 of the GST Act.
Retail & Consumer Products Home
We are Retail We are Retail
Our senior people have worked in retail for 25 years. That’s 25 years of experience helping some of Australia’s largest and most important businesses to be more successful. Put simply, we implement solutions that grow businesses, and our work makes a positive and profound impact on the lives of millions of people around Australia.
Technology, Media & Telecommunications Home
Client alert Digital Games Tax Offset
Income Tax Assessment Amendment (Digital Games Tax Offset) Bill 2021: Measure for Consultation
  • Careers Home
  • Working at Grant Thornton
  • Student opportunities
  • Experienced careers
  • Contact us
  • Alumni
Working at Grant Thornton Home
  • Flexibility
  • Your career and development
  • Diversity and inclusion
  • In the community
  • What we offer you
Student opportunities Home
  • Graduates
  • Vacationer Program
  • The application process
  • FAQs
  • Student application tips and tricks
  • Positions available
Experienced careers Home
  • Client spotlight
  • Positions available
    • EN
    • Contact us
    1. Home
    2. Client alerts
    3. 2012
    4. Tax Alert: Australia’s new transfer pricing rules – Stage 1

    Tax Alert: Australia’s new transfer pricing rules – Stage 1

    14 Nov 2012

    2012

    • Executive remuneration disclosure proposals for listed companies
    • Get Started on Expense Management Today
    • Public Sector Reform, Getting the Balance Right
    • Australian Charities and Not-for-profits Commission commenced on 3 December 2012
    • Corruption in sport: Do you really know how clean your organisation is?
    • Crisis Recovery cover
    • Superannuation Tax update: SuperStream
    • Superannuation Tax update: SuperSeeker enhancements
    • Superannuation Tax Update: Other tax changes effective from 1 July 2012
    • 2012-13 Federal Budget update
    • Group Protection
    • Administration - Clearing House services
    • Super system review - Progress to date
    • Tax Alert: Queensland miners further targeted in changes to state mining taxes
    • Tax Alert: ATO guidance released on margin scheme valuations
    • Tax Alert: Superannuation Do's and Dont's
    • Queensland State Budget 2012-13
    • Tax Alert: “Son of Hold-back" Arrangements
    • Tax Alert: Living Away From Home (LAFH) new law and ATO publishes reasonable food allowances
    • Indirect Tax Update: October 2012
    • Tax Alert: Australia’s new transfer pricing rules – Stage 1
    • Transfer Pricing Alert: Stage 2 Reform Exposure Draft Released

    The Tax Laws Amendment (Cross-Border Transfer Pricing) Bill (No 1) 2012 (Stage 1) has passed through Parliament and now awaits Royal Assent.

    This new legislation applies to transactions with related parties in countries that have Double Taxation Agreements (DTAs) with Australia.

    The key impacts of Stage 1 reforms are significant and wide-ranging:

    • the new legislation will apply retrospectively from 1 July 2004
    • Stage 1 allows the Australian Tax Office (ATO), where a taxpayer is deemed to not be dealing at arm’s length, to reconstruct the related party transactions based on how they believe independent parties would have structured the arrangement
    • the new legislation will allow the ATO to challenge deductions for intercompany interest, notwithstanding the thin capitalisation safe harbour limit, where the ATO considers the level of debt to be not commercially realistic This Bill forms part of the ATO’s intensified focus on the enforcement of Australia’s transfer pricing rules. This is supported by the dramatic increase in transfer pricing disclosure requirements with the recently introduced International Dealings Schedule, which forms part of the company income tax return and replaces the aging Schedule 25A and the thin capitalisation schedules.  

    With the enactment of this new legislation, taxpayers should expect:

    • renewed focus on companies that have related party transactions and are recording low profit margins or operating losses
    • significant impact on cross border funding of transactions.  Taxpayers should review all current and historical cross border funding arrangements and ensure appropriate supporting documentation is maintained
    • continuing interest by the ATO on businesses that have or plan to restructure their operations by shifting  functions, (tangible and intangible) assets or risks overseas
    • focus on transfer pricing documentation and related party decisions dating back to 1 July 2004.  Taxpayers should ensure they have appropriate support for their related party transactions during this period

    More changes to come – Stage 2

    Stage 2 of the transfer pricing reforms will be equally significant. The Australian Treasury is currently finalising the draft legislation for Stage 2 and aims to release an exposure draft for consultation and comment in mid-September.  We expect that Stage 2 will include:

    • treatment of transactions with non-treaty countries
    • transfer pricing documentation requirements
    • transfer pricing penalty provisions

    Taxpayers will have only 30 days to respond to these dramatic reforms. It is the Government’s intention to introduce Stage 2 of the legislation to Parliament at the end of their Spring sitting, around late November.

    What does this all mean?

    The message is clear – the ATO is looking closely at a taxpayer’s international related party dealings. Greater disclosure requirements, more sophisticated scrutiny tools and the adoption of the new transfer pricing regulatory framework supports the ATO’s commercial, outcomes-based approach to transfer pricing.

    Although greater consistency with trading partners in the “international dealings” arena will be viewed as a positive development for Australia, taxpayers are advised to be prepared for the “new transfer pricing environment” and should review their transfer pricing policies and practices, as well as ensure that the appropriate documentation and support are in place.

    Grant Thornton advises many multinational groups on Australia’s transfer pricing regime. 

    For more information please contact:

    Jason Casas
    Jason Casas
    Partner & National Head of Transfer Pricing Melbourne
    Email address Jason Casas VCard
    View full profile

    Share this page

    • Share this page on Facebook LinkedIn
    • Share this page on Twitter Twitter
    • Share this page on LinkedIn LinkedIn
    • Share this page on Wechat WeChat
    • Share this page via email Email
    • Grant Thornton on Youtube
    • LinkedIn icon
    • Twitter icon
    • Facebook icon
    Connect
    • Contact us
    • Locations
    • Meet our people
    • Subscribe
    • Staff portal
    About
    • About us
    • Careers
    • News centre
    • Client alerts
    • Grant Thornton Foundation
    • Grant Thornton Affinity
    Legal
    • Privacy
    • Compliance and ethics
    • Modern slavery statement
    • Disclaimer
    • Site map

    © 2022 Grant Thornton Australia Limited – All rights reserved