Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 815 - Cross-border transfer pricing  

Subdivision 815-C - Arm ' s length principle for permanent establishments  

Operative provisions

SECTION 815-220   When an entity gets a transfer pricing benefit  

815-220(1)    
An entity gets a transfer pricing benefit from the attribution of profits to a *PE of the entity if:

(a) the amount of profits (the actual profits ) attributed to the PE differs from the *arm ' s length profits for the PE; and

(b) had the arm ' s length profits, instead of the actual profits, been attributed to the PE, one or more of the following would, apart from this Subdivision, apply:

(i) the amount of the entity ' s taxable income for an income year would be greater ;

(ii) the amount of the entity ' s loss of a particular *sort for an income year would be less ;

(iii) the amount of the entity ' s *tax offsets for an income year would be less .

Nil amounts

815-220(2)    
For the purposes of this section:

(a) treat an entity that has no taxable income for an income year as having a taxable income for the year of a nil amount; and

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

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