Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 (101 of 2013)

Schedule 2   Modernisation of transfer pricing rules

Part 1   Main amendments

Taxation Administration Act 1953

6   At the end of Subdivision 284-C in Schedule 1

Add:

284-165 Exception - threshold for penalty arising from cross-border transfer pricing

(1) You are not liable to an administrative penalty under subsection 284-145(2B) if your *scheme shortfall amount is equal to or less than your *reasonably arguable threshold.

(2) You are also not liable to an administrative penalty under that subsection if:

(a) you have the *scheme shortfall amount because of section 284-30 (about trusts); and

(b) the amount by which the trust would, apart from the application of Subdivision 815-B or 815-C of the Income Tax Assessment Act 1997, have had a greater *net income, or a lesser *tax loss, is equal to or less than the trust's *reasonably arguable threshold.

(3) You are also not liable to an administrative penalty under that subsection if:

(a) you have the *scheme shortfall amount because you are a partner in a partnership that participated in the *scheme; and

(b) the amount by which the partnership would, apart from the application of Subdivision 815-B or 815-C of that Act, have had a greater *net income, or a lesser *partnership loss, is equal to or less than the partnership's *reasonably arguable threshold.

Nil amounts

(4) For the purposes of this section:

(a) treat a trust or a partnership that has no *net income for an income year as having a net income for the year of a nil amount; and

(b) treat a trust that has no *tax loss for an income year as having a tax loss for the year of a nil amount; and

(c) treat a partnership that has no *partnership loss for an income year as having a partnership loss for the year of a nil amount.