The ATO released the Draft Practical Compliance Guideline PCG 2018/D8. Transfer pricing arrangements have been one of the ATO’s focal points in recent years due to the increasing number of multinationals operating in Australia through subsidiaries acting as inbound distributors.

The ATO’s risk assessment framework considers an inbound distributor to be an intermediary between the producer of a good and another entity in the distribution channel or supply chain. The ATO’s draft ruling applies to a wide variety of inbound distributors including limited risk distributors for goods or digital products or services. The Guidelines also include any related activities involving the provision of ancillary services such as warehousing.

Read more: Inbound distributors - Transfer pricing issues ahead!

ISO 31000 is a suite of standards relating to risk management created by the international organisation for standardisation. The purpose of 31000 is to provide principles and guidelines on risk management and was first created in 2009. The principles and guidelines are not developed for any particular industry group or management system or particular field of endeavour rather to provide best practice guidance to any organisation or operation concerned with risk management.

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Further to the OECD’s Base Erosion and Profit Shifting (BEPS) project, an action item was identified in relation to hybrid mismatches.

What are hybrid mismatches?

Hybrid mismatches are essentially arrangements where the taxation treatment differs across jurisdictions. Common misconceptions about hybrids include that they relate solely to related party transactions or are solely focused on structures. This is not the case under the new law which go significantly further and look through certain domestic laws when determining domestic tax treatment.

Read more: Additional International Tax Complexities impacting Domestic tax treatment

Author: Sara Britt

The Supreme Court’s landmark decision in South Dakota v. Wayfair, et al. on June 21, 2018, spoke for the states when it overruled the “physical presence” standard long held in Quill Corp. v. North Dakota — changing the game for sales tax collection.

The decision stands to affect all types of businesses in various industries and locations throughout the world. Below are some key questions and answers that will help you understand the impact and potential risks to your business, and what you should do next.

Read more: 6 Things You Need to Know About Wayfair and Its Impact on Your Sales Tax Obligations

Author: David Prichard

Online retail may be a booming industry as more and more of us are choosing to shop online, however for many Australian business who ship their products worldwide this sector brings many additional considerations and vulnerabilities.

One of these is being subject to the ever-changing sales tax laws that govern the country in which their customers reside where the onus is on the business to ensure that the correct sales tax applied. While this may seem simple enough when shipping to a country with a sales tax such as the GST which is applied nationwide, in countries where sales taxes are stipulated state by state ensuring that the correct tax is applied can be more complex and if you’re an Australian business shipping to the US this complexity is likely to increase.

Read more: US Ruling on Sales Taxes brings additional complexity for online Australian retailers