The Australian Taxation Office’s next transfer pricing audit is likely to center on the electronics and IT industries. According to a report in the Australian Financial Review, the Taxation office questionnaires have been sent to electronics manufacturers, and hardware and software producers will be next. Michael Happell, a senior tax partner at Price Waterhouse, told the newspaper that this is often an indicator that an audit is imminent. The ATO maintains that it is not singling out particular industries. There are audits under way in a large majority of industries all the time, ATO assistant commissioner Margaret Oates is quoted as saying. Under Australian transfer pricing rules, the ATO can construct its own pricing table when it suspects international profit shifting between companies.
