Income Tax Assessment Act 1997
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.
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