Income Tax Assessment Act 1997



Division 815 - Cross-border transfer pricing  

Subdivision 815-C - Arm ' s length principle for permanent establishments  

Operative provisions

SECTION 815-215   Substitution of arm ' s length profits  

For the purposes covered by subsection (2), if an entity gets a *transfer pricing benefit from the attribution of profits to a *PE of the entity:

(a) the amount of profits actually attributed to the PE is taken not to have been so attributed; and

(b) instead, the *arm ' s length profits are taken to have been attributed to the PE.


There are special rules about documentation that affect when an entity has a reasonably arguable position about the application (or non-application) of this Subdivision: see Subdivision 284-E in Schedule 1 to the Taxation Administration Act 1953 .

The purposes covered by this subsection are:

(a) if the *transfer pricing benefit arises under subparagraph 815-220(1)(b)(i) - working out the amount (if any) of the entity ' s taxable income for the income year; and

(b) if the transfer pricing benefit arises under subparagraph 815-220(1)(b)(ii) - working out the amount (if any) of a loss of a particular *sort for the income year; and

(c) if the transfer pricing benefit arises under subparagraph 815-220(1)(b)(iii) - working out the amount (if any) of the entity ' s *tax offsets for the income year.


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