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In relation to the Australian Country by Country (CbC) reporting rules, the Australian Taxation Office (ATO) has released the timeframes for filing the Australian Local Files for the year ended 31 December 2017 ("Year 2" Australian Local Files) or later. Taxpayers that wish to lodge "Part A" of their Local File instead of completing certain questions on the International Dealings Schedule (IDS) will have until 14 September 2018 to lodge Part A.

This extended due date does not alter other reporting obligations, including the date for lodging the income tax return, and preparing transfer pricing documentation (for taxpayers wishing to be eligible to establish a reasonably arguable position on their transfer pricing). The ATO has advised that there will be no extension in relation to Full Local File lodgement (inclusive of Part A, Part B, Short Form and Master File) which will be due on 31 December 2018 for the 31 December 2017 year.

The ATO also is expected to conduct compliance activities to identify and follow up with taxpayers that failed to comply with their reporting obligations for the first year. Financial penalties of up to AUD525,000 per statement can apply for noncompliance.

Read more in our Insights article from Transfer Pricing.