The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the draft Practical Compliance Guideline PCG 2021/D4, Intangibles Arrangements (Draft PCG).
This submission has been developed in close consultation with a subcommittee of The Tax Institute's members to obtain a breadth of views on issues that impact our broader membership.
We invite the ATO to consider our submission and respectfully request that further action as recommended in this submission is taken to enhance the Draft PCG to ensure clear guidance and practical insight is provided to the community. We have set out below our main concerns in relation to the Draft PCG, in particular:
- the object and purpose of the Draft PCG, and the extent to which it goes beyond existing guidance relating to transfer pricing; and
- the onerous documentation and evidence requirements currently required under the Draft PCG, including those requirements having retrospective effect.