Income Tax Assessment Act 1997
View history note
Hide history note[ CCH Note: For the application of Subdivisions 815-B , 815-C and 815-D of the Income Tax Assessment Act 1997 , as inserted, see Division 815 of the Income Tax (Transitional Provisions) Act 1997 .]
SECTION 815-130 Relevance of actual commercial or financial relations
Basic rule
815-130(1)
The identification of the *arm ' s length conditions must:
(a) be based on the commercial or financial relations in connection with which the actual conditions operate; and
(b) have regard to both the form and substance of those relations.
Exceptions
815-130(2)
Despite paragraph (1)(b), disregard the form of the actual commercial or financial relations to the extent (if any) that it is inconsistent with the substance of those relations.
815-130(3)
Despite subsection (1), if:
(a) independent entities dealing wholly independently with one another in comparable circumstances would not have entered into the actual commercial or financial relations; and
(b) independent entities dealing wholly independently with one another in comparable circumstances would have entered into other commercial or financial relations; and
(c) those other commercial or financial relations differ in substance from the actual commercial or financial relations;
the identification of the *arm ' s length conditions must be based on those other commercial or financial relations.
815-130(4)
Despite subsection (1), if independent entities dealing wholly independently with one another in comparable circumstances would not have entered into commercial or financial relations, the identification of the *arm ' s length conditions is to be based on that absence of commercial or financial relations.
815-130(5)
Subsections 815-125(3) and (4) (about comparability of circumstances) apply for the purposes of this section.
[ CCH Note: For the application of Subdivisions 815-B , 815-C and 815-D of the Income Tax Assessment Act 1997 , as inserted, see Division 815 of the Income Tax (Transitional Provisions) Act 1997 .]
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