INCOME TAX ASSESSMENT ACT 1997 - SECT 815.215 Substitution of arm's length profits

INCOME TAX ASSESSMENT ACT 1997 - SECT 815.215

  (1)   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.

Note:   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 .

  (2)   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.