Australia weighs adoption of new OECD BEPS transfer pricing standards

The Australian Treasury on February 11 opened a consultation on whether Australia should adopt into law final OECD/G20 base erosion profit shifting (BEPS) transfer pricing recommendations.

The goverment seeks feedback on the adoption of the BEPS report, Alleging Transfer Pricing Outcomes with Value Creation, which has been approved by G20 members, including Australia, and the Council of the OECD.

Treasury seeks feedback on issues such whether there would be any unintended consequences if the transfer pricing changes are adopted, guidance on appropriate effective dates for the changes, whether incorporation of the guidelines into Australian law can be done by regulation as opposed to by legislation, and what kind of additional tax guidance would be needed to support the new rules.

The closing date for submissions is February 26.