• Skip to content
  • Skip to navigation

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
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Nigeria
  • Namibia
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • United States
  • Uruguay
  • Venezuela
  • Turks & Caicos
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macedonia
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
  • Lebanon
Grant Thorton Logo

Grant Thornton Logo Grant Thornton Logo

Contact us
  • Insights
  • Services
  • Industries
  • Meet our people
  • Careers
  • News centre
  • Locations
  • About us
  • Audit
  • Tax
  • Private Advisory
  • Financial Advisory
  • Grant Thornton Consulting
  • Asia
Audit Home
  • Audit methodology
  • Audit technology
  • Financial reporting advisory
Tax Home
  • Corporate tax
  • Employee equity reward schemes
  • Fringe benefits tax
  • Global mobility services
  • GST & indirect tax
  • International tax
  • Payroll assurance
  • Research & development
  • Tax compliance
  • Tax governance & risk management
  • Tax in mergers & acquisitions
  • Tax lawyers
  • Transfer pricing
Private Advisory Home
  • Family Business Consulting
  • Family office services
  • Private wealth
  • Superannuation
Financial Advisory Home
  • Corporate finance
  • Debt advisory
  • Forensic consulting
  • Payments advisory
  • Restructuring advisory
Grant Thornton Consulting Home
  • Business risk
  • Human capital
  • Performance improvement
  • Strategy & growth
  • Technology consulting
  • GNC Group Consulting
Asia Home
  • China practice
  • India practice
  • Japan practice
  • Agribusiness, food & beverage
  • Automotive dealers
  • Education
  • Energy & resources
  • Financial services
  • Health & aged care
  • Life sciences
  • Manufacturing
  • Not for Profit
  • Professional services
  • Public sector
  • Real estate & construction
  • Retail & consumer products
  • Technology & media
Agribusiness, food & beverage Home
Bite Size Dealtracker Food, Beverage & Agribusiness industry insights
Key insights for the Australian Food, Beverage & Agribusiness industry.
Financial services Home
  • Banking
  • Fintech
  • Private Health Insurance
  • Superannuation
  • Asset management
  • BEAR FAQs
  • Open banking
Royal Commission wrap up Top 10 things for Financial Services providers
Eleven months on from the first round of hearings for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Commissioner Hayne’s final report has been released.
Health & aged care Home
Aged Care Royal Commission Perspectives on the Future of Ageing
Transitions in ageing are not consistent and systematic as they are described by our ageing systems. Sometimes they are incremental, sometimes accidental, sometimes monumental, and they are always personal. We can create something better.
Life sciences Home
Biotechnology Industry Position survey Australia's biotechnology industry drives economic growth
The 2019 Biotechnology Industry Position survey conducted by Ausbiotech and supported by Grant Thornton has revealed that new technologies across regenerative medicine and medicinal cannabis are disrupting the industry, and Australia's global strength in clinical trials continues to drive contributions to the economic and social fabric of the country.
Manufacturing Home
mid-sized business report Manufacturing is critical to our economy – how can we support the sector?
Although the knock-on effects of the Australian automotive industry exiting our country are yet to be fully understood, the industry is evolving, and manufacturing continues to be a major employer and critical to our overall economy.
Not for Profit Home
NATIONAL OUTCOMES MEASUREMENT PROGRAM A practical framework
Royal Commissions and federal budgets are critical things for Nonprofit human service providers to be thinking about at this point in time.
Real estate & construction Home
mid-sized business report Supporting affordable housing requires planning, certainty – and tax reform
There is a lot of noise around the property sector at the moment – and it’s not all positive. Prices are down – but this shouldn’t be a surprise when some markets (namely Sydney & Melbourne) saw unprecedented hikes in recent years.
Retail & consumer products Home
GNC Group Consulting The Technology Trap: Online innovation in retail
I recently attended the NRF Retail Big Show in New York, an overwhelming smorgasbord of retail technology and new store concepts.
Technology & media Home
  • Telecommunications
Scaling-up for Growth From start-up to scale-up
Navigating the complexities of growth and maintaining previous success is a challenge for all mid-size businesses.
  • Working at Grant Thornton
  • Student opportunities
  • Experienced careers
  • Contact us
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
Experienced careers Home
  • Client spotlight
  1. Grant Thornton Australia | Audit, Tax and Advisory
  2. Client alerts
  3. 2012
  4. Transfer Pricing Alert: Stage 2 Reform Exposure Draft Released

Transfer Pricing Alert: Stage 2 Reform Exposure Draft Released

27 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

On 22 November 2012 Treasury released the Exposure Draft of the Tax Laws Amendment (Cross-Border Transfer Pricing) Bill 2013: Modernisation of transfer pricing rules (“Stage 2”) which proposes to update Australia’s domestic transfer pricing regime.

The key impacts of Stage 2 are expected to be:

  • The application of significant penalties to Transfer Pricing adjustments where the company does not maintain specific transfer pricing documentation
  • The intention of the ATO to apply the new Transfer Pricing rules to all cross-border transactions, including transactions between third parties
  • Shifting transfer pricing to a self-assessment basis, placing on the company’s public officer the responsibility of determining the company’s overall tax position arising from all cross-border dealings
  • The introduction of time limits of eight years on when the ATO can make Transfer Pricing amendments; and
  • The introduction of specific rules allowing the ATO to reconstruct transactions and arrangements

The proposed changes to Australia’s Transfer Pricing rules (Stage 2) are supplementary to those already introduced last September. Stage 1, which received Royal Assent on 8 September 2012, focused on the retrospective application of Transfer Pricing rules for companies dealing with foreign associated entities located in countries that have a double tax treaty with Australia.

In comparison, Stage 2 focuses on how Australia’s Transfer Pricing regime will operate prospectively for all taxpayers, including the application of significant penalties to Transfer Pricing adjustments where the company does not maintain specific Transfer Pricing documentation.

The proposed changes are directed to repeal Division 13 of Part III of the Income Tax Act 1936, and align the existing Transfer Pricing regime to the self-assessment taxation system operative in Australia, placing on the company’s public officer the responsibility of determining the company’s overall tax position arising from all cross-border dealings.  

What does this mean for you?

  • Increased responsibility on the public officer to ensure that all cross-border dealings follow the arm’s length principle
  • Increasing complexity and uncertainty for all businesses’ with cross-border dealings
  • The imminent need to prepare contemporaneous transfer pricing documentation to avoid substantial penalties; and
  • The need to review all transfer pricing positions, both prospectively and retrospectively

It is unclear whether the Government has estimated the full impact that these changes will have on both the Australian and international business community. Interested parties have been invited to comment on the exposure draft before 20 December 2012.

Grant Thornton will present its submission to Treasury outlining its views on the proposed changes (Stage 2), along with the main concerns of the business community. Please do not hesitate to contact us if you would like to provide comments.

Only over time will the true economic ramifications of this reform be revealed and the impact it will have on your business – don’t leave it too late to make the necessary changes.

Grant Thornton works closely with many multinational groups to ensure they comply with taxation regulations in a cost efficient and effective manner. 

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
Connectclose
  • Contact us
  • Locations
  • Meet our people
  • Subscribe
  • Staff portal
Aboutclose
  • About us
  • Careers
  • News centre
  • Client alerts
  • Grant Thornton Foundation
  • Grant Thornton Affinity
Legalclose
  • Privacy
  • Compliance and ethics
  • Disclaimer
  • Site map

© 2021 Grant Thornton Australia Limited – All rights reserved

    • EN
    • Contact us