INCOME TAX ASSESSMENT ACT 1997 - SECT 815.105 Object

INCOME TAX ASSESSMENT ACT 1997 - SECT 815.105

  (1)   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.

  (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.