Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 (101 of 2013)

Schedule 2   Modernisation of transfer pricing rules

Part 1   Main amendments

Taxation Administration Act 1953

3   After subsection 284-145(2A) in Schedule 1

Insert:

(2B) You are also liable to an administrative penalty if:

(a) to give effect to Subdivision 815-B or 815-C of the Income Tax Assessment Act 1997 (also the adjustment provision ) in relation to a *scheme, the Commissioner:

(i) amends your assessment for an income year; or

(ii) serves you with one or more notices under subsection 128C(7) of the Income Tax Assessment Act 1936 in respect of income that is taken because of the application of the adjustment provision to have been derived in the income year; and

(b) as a result, you are liable to pay an additional amount of income tax or *withholding tax (as the case requires).

Note: Subdivisions 815-B and 815-C of the Income Tax Assessment Act 1997 apply the arm's length principle (about transfer pricing) to entities and permanent establishments respectively.


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