On the afternoon of November 20th, PwC Australia and China Chamber of Commerce in Australia (CCCA) successfully held a ‘transfer pricing developments in the Australian landscape’ Seminar in the PwC Sydney office building. Nearly 50 representatives of Chinese enterprises in Australia participated in the meeting. The seminar was led by Mr. Edwin Baghdasarayan, PwC’s Australian transfer pricing service partner. He deeply analyzed the current transfer pricing policy of Australia to the participants, and professionally explained coping strategies to the Chinese-funded enterprises. The conference is fully seated.
Ms Wang Guannan, Secretary General of CCCA and Chief Representative of CCPIT Australia gave a welcome speech and the seminar officially opened.
Mr. Edwin mainly emphasized the following four points in his speech:
- The Australian Taxation Office (ATO) is under great pressure on fiscal revenue. The Taxation Office plans to levy $ 5 billion to $ 7 billion in income taxes on multinational companies within five years. This will be achieved mainly by reviewing multinational company transfer pricing. In addition, ATO has sufficient human resource on corporate tax review, and has invested a lot on staff and funding in auditing multinational companies. Therefore, multinational companies need to pay special attention to transfer pricing.
- The cross-border financing instruments of multinational companies and the distribution activities of affiliated companies are the focus of ATO. Enterprises with the above arrangements must pay attention to transfer pricing.
- The preparation of transfer pricing documents is extremely important for multinational corporations. This is the first line defense for multinational corporations in responding to ATO’s review, and it is also a powerful tool to reduce the amount of fines from ATO.
- ATO’s review process for multinational enterprises includes the initial risk review and subsequent tax audits. Enterprises must have a thorough understanding of review measures before responding
Mr. Edwin Baghdasarayan, PwC’s Australian transfer pricing service partner
In Q & A session, the participants actively asked questions, and Mr Baghdasarayan explained patiently. The atmosphere was very warm.
Mr Baghdasarayan patiently answering questions
Rachel Guo, Tax Manager, PwC
The PwC Transfer Pricing Services team has number of years experience in negotiating with the Australian Taxation Office, and is familiar with the Australian Taxation Office’s review methods and procedures. In addition, PwC has a huge and authentic database of tax information. Through the use of advanced data analysis techniques, it will bring unparalleled value and insight to clients.
For more information, please contact PwC team.