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ATO Tightens Scrutiny of Related-Party Financing

January 1, 2025
ATO Tightens Scrutiny of Related-Party Financing

ATO Tightens Scrutiny of Related-Party Financing

The Australian Taxation Office (ATO) is introducing a new risk assessment system for loans between related international parties. Under the latest practical compliance guideline (PCG 2025/D2), companies must review transfer pricing arrangements before considering thin capitalisation, thereby increasing compliance demands for all inbound financing.

Source:

ATO Draft PCG 2025/D2

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