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INCOME TAX ASSESSMENT ACT 1997 - SECT 417.140

Transfer pricing benefits relating to transitioned petroleum activities

Acquisitions of Timor Sea petroleum

             (1)  An entity is taken, for the purposes of Division 815, not to get a * transfer pricing benefit from conditions that operate between the entity and another entity in connection with their commercial or financial relations just because the entity acquires petroleum (within the meaning of the * Timor Sea Maritime Boundaries Treaty) from the other entity if:

                     (a)  the petroleum was produced by undertaking * transitioned petroleum activities in the Bayu-Undan Gas Field (within the meaning of that treaty); and

                     (b)  the price for the acquisition is the price that is used by, or agreed with, a * foreign government agency of Timor-Leste in relation to the acquisition for the purposes of administering the law of Timor-Leste relating to taxation.

Supplies of goods and services

             (2)  An entity is taken, for the purposes of Division 815, not to get a * transfer pricing benefit from conditions that operate between the entity and another entity in connection with their commercial or financial relations just because the entity supplies goods or services to the other entity if:

                     (a)  the supply occurred pursuant to the terms of an * arrangement, connected with undertaking * transitioned petroleum activities, that:

                              (i)  was in force just before the * Timor Sea Maritime Boundaries Treaty was made; or

                             (ii)  is substantially similar to an arrangement that was in force just before that time; and

                     (b)  the price for the supply is the price that is used by, or agreed with, a * foreign government agency of Timor-Leste in relation to the supply for the purposes of administering the law of Timor-Leste relating to taxation.

Table of Subdivisions

             Guide to Division 418

418-A   Object of this Division

418-B    Junior minerals exploration incentive tax offset

418-C    Junior minerals exploration incentive franking credit

418-D   Creating exploration credits

418-DA Exploration credits allocation

418-E    Issuing exploration credits

418-F    Excess exploration credits

418-G   Other matters

Guide to Division 418



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