Software developer Atlassian has agreed to pay $92 million of extra tax to the Tax Office and resolved to keep intellectual property in Australia that it will pay future tax on.
The agreement between Atlassian and the ATO follows three years of negotiations and an ongoing audit by tax officials of the Australian-born, US-listed tech company.
Atlassian’s financial statements filed with the US Securities and Exchange Commission this month disclosed that the multinational company completed a transfer pricing agreement with the ATO for tax years dating back to 2019.
Atlassian, which makes communication and project management software for businesses, said in its quarterly financial report: “During the three months ended December 31, 2023, the company finalised an advanced pricing arrangement with the Australian Taxation Office with respect to its transfer pricing arrangements between Australia and the US that covers the tax years ended June 30, 2019 to June 30, 2025.
“Pursuant to the terms of the agreement, the company made a cash tax payment of approximately $US60.5 million [$92 million] during the three months ended December 31, 2023,”