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

Schedule 2   Modernisation of transfer pricing rules

Part 2   Other amendments

Taxation Administration Act 1953

48   At the end of section 284-90 in Schedule 1

Add:

(3) An entity's reasonably arguable threshold for an income year is:

(a) unless paragraph (b) applies - the greater of the following amounts:

(i) $10,000;

(ii) 1% of the income tax payable, or *MRRT payable (as the case requires), by the entity for the income year, worked out on the basis of the entity's *income tax return or *MRRT return (as the case requires); or

(b) if the entity is a trust or partnership - the greater of the following amounts:

(i) $20,000;

(ii) 2% of the entity's *net income (if any) for the income year worked out on the basis of the entity's *income tax return.