Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 815 - Cross-border transfer pricing  

Subdivision 815-A - Treaty-equivalent cross-border transfer pricing rules  

Operative provisions

SECTION 815-5  

815-5   Object  

The object of this Subdivision is to ensure the following amounts are appropriately brought to tax in Australia, consistent with the arm ' s length principle:

(a) profits which would have accrued to an Australian entity if it had been dealing at * arm ' s length , but, by reason of non-arm ' s length conditions operating between the entity and its foreign associated entities, have not so accrued;

(b) profits which an Australian permanent establishment (within the meaning of the relevant * international tax agreement ) of a foreign entity might have been expected to make if it were a distinct and separate entity engaged in the same or similar activities under the same or similar conditions, but dealing wholly independently.