INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 815 - Cross-border transfer pricing  

Subdivision 815-B - Arm ' s length principle for cross-border conditions between entities  

Operative provisions

SECTION 815-105   Object  

815-105(1)  
The object of this Subdivision is to ensure that the amount brought to tax in Australia from cross-border conditions between entities is not less than it would be if those conditions reflected:


(a) the arm ' s length contribution made by Australian operations through functions performed, assets used and risks assumed; and


(b) the conditions that might be expected to operate between entities dealing at *arm ' s length.

815-105(2)  
The Subdivision does this by specifying that, where an entity would otherwise get a tax advantage from actual conditions that differ from *arm ' s length conditions, the arm ' s length conditions are taken to operate for income tax and withholding tax purposes.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.