On 11 October 2018, the Australian Taxation Office published an updated version of the Practical Compliance Guideline (PCG) 2017/1, which covers the ATO's compliance approach to transfer pricing issues related to centralized operating models involving procurement, marketing, sales and distribution functions ("hubs"). The main update is the addition of a new Schedule 2 - Offshore Non-Core Procurement Hub Arrangements.
Schedule 2 sets out the ATO's risk assessment framework for offshore procu…