INCOME TAX ASSESSMENT ACT 1997 - SECT 815.25 Modified transfer pricing benefit for thin capitalisation

INCOME TAX ASSESSMENT ACT 1997 - SECT 815.25

  (1)   This section modifies the * transfer pricing benefit an entity gets, or apart from this section would get, in an income year if:

  (a)   Division   820 (about thin capitalisation) applies to the entity for the income year; and

  (b)   the transfer pricing benefit relates to profits, or a shortfall of profits, referable to costs that are * debt deductions of the entity for the income year.

  (2)   If working out what those costs might have been, or might be expected to be, involves applying a rate to a * debt interest:

  (a)   work out the rate by applying section   815 - 15, having regard to section   815 - 20; but

  (b)   apply the rate to the debt interest the entity actually issued.

Note:   Division   820 may apply to further reduce debt deductions.