The ATO has finalised and released its compliance approach to intangibles migration arrangements involving international related parties in PCG 2024/1.
On 17 January 2024, the ATO released Practical Compliance Guideline PCG 2024/1 (the PCG) relating to intangibles migration arrangements following an extended consultation period. The PCG, which applies to both new and existing arrangements, sets out when the ATO is likely to apply resources to consider the potential application of the general anti-avoidance rules (GAARs) or the transfer pricing rules to cross-border related party ‘Intangibles Migration Arrangements’. In the PCG, ‘Intangible Migration Arrangements’ are defined as cross-border arrangements involving the ‘migration’ (which is specifically defined within the PCG) of intangible assets, or arrangements with similar effect. This includes arrangements relating to the Australian development, enhancement, maintenance, protection and exploitation (DEMPE) activities in connection with intangible assets held offshore.