CSL Ltd Annual Report 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 3 2. Uncertain Tax Positions Why significant How our audit addressed the key audit matter The Group operates in a number of different tax jurisdictions, all of which have specific tax risks and regulations that need to be considered. In particular, transfer pricing arrangements relating to transactions within the Group are significant with a large number of cross-border purchases and sales, intercompany charges as well as transfers of intellectual property between Group entities in different tax jurisdictions. The Group’s disclosures with respect to taxation are included in Note 3 of the financial report. We assessed the Group’s various tax exposures to assess whether adequate provisions have been recorded for exposures with higher risk and uncertainty. Involving our taxation specialists in relevant countries, our audit procedures included: ► assessing the Group’s determination of current and deferred income tax expense, with particular focus on uncertain tax positions and consideration of AASB Interpretation 23 ‘Uncertainty over Income Tax Treatments’; ► considering any third-party taxation advice received; ► understanding the status of and accounting for any tax audits being conducted by regulators around the world and their findings; and ► considering the Group’s transfer pricing documentation. We have assessed the Group’s disclosures with respect to taxation in Note 3 of the financial report. CSL Limited Annual Report 2020/21 151