Document ID: chunk:federal_register_of_legislation:C2025A00009:clause:2_1:p13
Version: federal_register_of_legislation:C2025A00009
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 13/17)
Character Range: 83453–86207

419‑100 Reducing a company's CMPTI expenditure to reflect mark‑ups within the company's group
419‑105 Disregarding registration of an activity that a company is paid to carry on

419‑95  Expenditure incurred while not at arm's length
  If:
 (a) a company incurs *CMPTI expenditure to another entity in carrying on all or part of a *registered CMPTI processing activity; and
 (b) either:
 (i) when the company incurs the expenditure, the company and the other entity do not deal with each other at *arm's length; or
 (ii) the other entity is the company's *associate; and
 (c) the expenditure exceeds the *market value of the relevant activity or part (as appropriate);
for the purposes of this Division (other than this section), the company is treated as if the amount of expenditure it incurred in carrying on the relevant activity or part (as appropriate) were equal to that market value.

419‑100  Reducing a company's CMPTI expenditure to reflect mark‑ups within the company's group
 (1) This section applies to a company if:
 (a) the company is entitled to a *CMPTI tax offset for *CMPTI expenditure in carrying on one or more of the company's *registered CMPTI processing activities; and
 (b) some or all of that expenditure (the group expenditure) is incurred to another entity (the group entity) for goods or services provided in relation to those activities when:
 (i) the group entity is *connected with the company; or
 (ii) the group entity is an *affiliate of the company or the company is an affiliate of the group entity.

Reducing the company's CMPTI expenditure by group mark‑ups
 (2) For the purposes of this Division (other than this section), disregard so much of the company's group expenditure as exceeds the actual cost to the group entity of providing those goods or services.
Note: This section can apply more than once if the company incurs CMPTI expenditure to more than one group entity.

419‑105  Disregarding registration of an activity that a company is paid to carry on
  If:
 (a) a company is or will be paid by another entity for carrying on an activity during an income year that is a *registered CMPTI processing activity for the company and the income year; and
 (b) the activity is or could be a registered CMPTI processing activity for any of the following for the income year:
 (i) the other entity;
 (ii) a *constitutional corporation *connected with the other entity;
 (iii) a constitutional corporation that is an *affiliate of the other entity;
 (iv) a constitutional corporation of which the other entity is an affiliate;
for the purposes of section 419‑5 (about entitlement to the *CMPTI tax offset), disregard that registration of the activity for the company and the income year.

Subdivision 419‑E—Review