02 August 2018 Australian Taxation Office issues draft schedule regarding tax risk classification for cross-border related party derivatives The Australian Taxation Office (ATO) issued a draft "Schedule 2: Related party derivative arrangements" (the draft schedule) on August 1, to be added to the ATO PCG 2017/4 "ATO compliance approach to taxation issues associated with cross-border related party financing arrangements and related transactions" (PCG). The draft schedule is proposed to apply from January 1, 2019 and sets out 14 specific risk indicators for cross-border related party derivative arrangements that are used to hedge or manage the economic exposure of a company or group of companies. It follows the 2018 release of the PCG, which set out the general ATO approach to risk assessment for cross-border related party financing transactions. Document ID: 2018-1558 |
