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 815-115 Substitution of arm ' s length conditions 815-115(1)
For the purposes covered by subsection (2), if an entity gets a *transfer pricing benefit from conditions that operate between the entity and another entity in connection with their commercial or financial relations:
(a) those conditions are taken not to operate; and
(b) instead, the *arm ' s length conditions are taken to operate.
Note 1:
The conditions that operate include, but are not limited to, such things as price, gross margin, net profit, and the division of profit between the entities.
Note 2:
There are special rules about documentation that affect when an entity has a reasonably arguable position about the application (or non-application) of this Subdivision: see Subdivision 284-E in Schedule 1 to the Taxation Administration Act 1953 .
815-115(2)
The purposes covered by this subsection are:
(a) if the *transfer pricing benefit arises under subparagraph 815-120(1)(c)(i) - working out the amount (if any) of the entity ' s taxable income for the income year; and
(b) if the transfer pricing benefit arises under subparagraph 815-120(1)(c)(ii) - working out the amount (if any) of the entity ' s loss of a particular *sort for the income year; and
(c) if the transfer pricing benefit arises under subparagraph 815-120(1)(c)(iii) - working out the amount (if any) of the entity ' s *tax offsets for the income year; and
(d) if the transfer pricing benefit arises under subparagraph 815-120(1)(c)(iv) - working out the amount (if any) of *withholding tax payable by the entity in respect of interest or royalties.
[ 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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