Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 815.215

Substitution of arm's length profits

             (1)  For the purposes covered by subsection (2), if an entity gets a * transfer pricing benefit from the attribution of profits to a * PE of the entity:

                     (a)  the amount of profits actually attributed to the PE is taken not to have been so attributed; and

                     (b)  instead, the * arm's length profits are taken to have been attributed to the PE.

Note:          There are special rules about documentation that affect when an entity has a reasonably arguable position about the application (or non-application) of this Subdivision: see Subdivision 284-E in Schedule 1 to the Taxation Administration Act 1953 .

             (2)  The purposes covered by this subsection are:

                     (a)  if the * transfer pricing benefit arises under subparagraph 815-220(1)(b)(i)--working out the amount (if any) of the entity's taxable income for the income year; and

                     (b)  if the transfer pricing benefit arises under subparagraph 815-220(1)(b)(ii)--working out the amount (if any) of a loss of a particular * sort for the income year; and

                     (c)  if the transfer pricing benefit arises under subparagraph 815-220(1)(b)(iii)--working out the amount (if any) of the entity's * tax offsets for the income year.



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