Document ID: chunk:federal_register_of_legislation:C2012A00115:clause:1_6:p5
Version: federal_register_of_legislation:C2012A00115
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 5/6)
Character Range: 12259–14897

the Commissioner considers that, but for the conditions mentioned in the *associated enterprises article:
 (i) the amount of the taxable income of the disadvantaged entity for an income year might have been expected to be less than its actual amount; or
 (ii) the amount of a tax loss of the disadvantaged entity for an income year might have been expected to be greater than its actual amount; or
 (iii) the amount of a *net capital loss of the disadvantaged entity for an income year might have been expected to be greater than its actual amount; or
 (iv) an amount of *withholding tax payable in respect of interest or royalties by the disadvantaged entity might have been expected to be less than its actual amount; and
 (c) the Commissioner considers that it is fair and reasonable that the actual amount mentioned in subparagraph (b)(i), (ii), (iii) or (iv) (as the case requires) be adjusted accordingly.

Consequential adjustment—business profits
 (2) The Commissioner may make a determination under subsection (4) in relation to an entity (the disadvantaged entity) if:
 (a) the Commissioner makes a determination under subsection 815‑30(1) in relation to a *transfer pricing benefit an entity gets under subsection 815‑15(2); and
 (b) the Commissioner considers that, if the permanent establishment were a distinct and separate entity engaged, and dealing, in the manner mentioned in the *business profits article:
 (i) the amount of the taxable income of the disadvantaged entity for an income year might have been expected to be less than its actual amount; or
 (ii) the amount of a tax loss of the disadvantaged entity for an income year might have been expected to be greater than its actual amount; or
 (iii) the amount of a *net capital loss of the disadvantaged entity for an income year might have been expected to be greater than its actual amount; or
 (iv) an amount of *withholding tax payable in respect of interest or royalties by the disadvantaged entity might have been expected to be less than its actual amount; and
 (c) the Commissioner considers that it is fair and reasonable that the actual amount mentioned in subparagraph (b)(i), (ii), (iii) or (iv) (as the case requires) be adjusted accordingly.

Nil amounts
 (3) For the purposes of this section:
 (a) treat an entity that has no taxable income for an income year as having a taxable income for the year of a nil amount; and
 (b) treat an entity that has no tax loss for an income year as having a tax loss for the year of a nil amount; and
 (c) treat an entity that has no *net capital loss for an income year as having a net capital loss for the year