Introduction
The Australian Taxation Office (ATO) has recently released the
final version of the Practical Compliance Guideline 2024/1 (PCG
2024/1), which details the ATO's approach to assessing the
tax risks associated with the migration of intangible assets. This
guidance document is relevant for companies who have entered into,
or are contemplating entering into, arrangements that involve the
transfer or licensing of intangible assets to offshore related
parties.
The main objective of PCG 2024/1 is to provide companies with
certainty and transparency on how the ATO will apply the transfer
pricing rules and the general anti-avoidance rule (GAAR) to
intangibles migration arrangements. The guidance document also aims
to encourage companies to self-assess and disclose their tax risks,
and to engage with the ATO early and cooperatively.
