Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 (70 of 2015)

Schedule 3   Offshore banking units

Part 5   Internal financial dealings

Income Tax Assessment Act 1936

33   At the end of section 121EB

Add:

Arm's length pricing

(4) For the purposes of this Division, treat an amount that, because of subsections (1) to (3):

(a) is included in the OBU's OB income; or

(b) is an allowable OB deduction of the OBU;

as being the amount that would be so included, or that would be the amount of the allowable OB deduction, were the OBU and the permanent establishments mentioned in paragraph (1)(d) dealing with each other at arm's length.

(5) For the purposes of determining the effect subsection (4) has in relation to the amount that is included or allowable, work out the arm's length dealing so as best to achieve consistency with:

(a) the documents covered by section 815-235 of the Income Tax Assessment Act 1997 (Guidance); and

(b) subject to paragraph (a), the documents covered by section 815-135 of that Act.