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 815-140   Modification for thin capitalisation  

815-140(1)  
This section modifies the way an entity to which section 815-115 applies works out its taxable income, or its loss of a particular *sort, for an income year, if:


(a) Division 820 (about thin capitalisation) applies to the entity for the income year; and


(b) the *arm ' s length conditions affect costs that are *debt deductions of the entity for the income year.

815-140(2)  
If working out what those costs would be if the *arm ' s length conditions had operated involves applying a rate to a *debt interest:


(a) work out the rate as if the arm ' s length conditions had operated; but


(b) apply the rate to the debt interest the entity actually issued.

Note:

Division 820 may apply to reduce or further reduce debt deductions.


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.