Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 815.105

Object

             (1)  The object of this Subdivision is to ensure that the amount brought to tax in Australia from cross-border conditions between entities is not less than it would be if those conditions reflected:

                     (a)  the arm's length contribution made by Australian operations through functions performed, assets used and risks assumed; and

                     (b)  the conditions that might be expected to operate between entities dealing at * arm's length.

             (2)  The Subdivision does this by specifying that, where an entity would otherwise get a tax advantage from actual conditions that differ from * arm's length conditions, the arm's length conditions are taken to operate for income tax and withholding tax purposes.



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