Tax Laws Amendment (Cross-Border Transfer Pricing) Act (No. 1) 2012 (115 of 2012)

Schedule 1   Amendments

Income Tax (Transitional Provisions) Act 1997

12   After Division 770

Insert:

Division 815 - Cross-border transfer pricing

Table of Subdivisions

815-A Treaty-equivalent cross-border transfer pricing rules

Subdivision 815-A - Treaty-equivalent cross-border transfer pricing rules

Table of sections

815-1 Application of Subdivision 815-A of the Income Tax Assessment Act 1997

815-5 Cross-border transfer pricing guidance

815-10 Scheme penalty applies in pre-commencement period as if only the old law applied

815-1 Application of Subdivision 815-A of the Income Tax Assessment Act 1997

Subdivision 815-A of the Income Tax Assessment Act 1997 applies to income years starting on or after 1 July 2004.

815-5 Cross-border transfer pricing guidance

Despite section 815-20 of the Income Tax Assessment Act 1997, the documents covered by that section for an income year that starts before 1 July 2012 are taken to be as follows:

(a) the Model Tax Convention on Income and on Capital, and its Commentaries, as adopted by the Council of the Organisation for Economic Cooperation and Development and last amended before the start of the income year;

(b) the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, as approved by that Council and last amended before the start of the income year.

815-10 Scheme penalty applies in pre-commencement period as if only the old law applied

(1) This section applies if:

(a) a determination under subsection 815-30(1) of the Income Tax Assessment Act 1997 has effect in relation to an entity in an income year; and

(b) the income year starts before 1 July 2012.

(2) Subdivision 284-C in Schedule 1 to the Taxation Administration Act 1953 applies in relation to the entity and the income year as if:

(a) Subdivision 815-A of the Income Tax Assessment Act 1997 had not been enacted; and

(b) each other provision of a taxation law applied in relation to the entity in the way it would have if that Subdivision had not been enacted.