Document ID: chunk:federal_register_of_legislation:C2012A00115:clause:1_6:p3
Version: federal_register_of_legislation:C2012A00115
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 3/6)
Character Range: 7086–9940

one amount of profits, or one shortfall of profits.

Meaning of associated enterprises article
 (5) An associated enterprises article is:
 (a) Article 9 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or
 (b) a corresponding provision of another *international tax agreement.

Meaning of business profits article
 (6) A business profits article is:
 (a) Article 7 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or
 (b) a corresponding provision of another *international tax agreement.

815‑20  Cross‑border transfer pricing guidance
 (1) For the purpose of determining the effect this Subdivision has in relation to an entity:
 (a) work out whether an entity gets a *transfer pricing benefit consistently with the documents covered by this section, to the extent the documents are relevant; and
 (b) interpret a provision of an *international tax agreement consistently with those documents, to the extent they are relevant.
 (2) The documents covered by this section are as follows:
 (a) the Model Tax Convention on Income and on Capital, and its Commentaries, as adopted by the Council of the Organisation for Economic Cooperation and Development and last amended on 22 July 2010;
 (b) the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, as approved by that Council and last amended on 22 July 2010;
 (c) a document, or part of a document, prescribed by the regulations for the purposes of this paragraph.
 (3) However, a document, or a part of a document, mentioned in paragraph (2)(a) or (b) is not covered by this section if the regulations so prescribe.
 (4) Regulations made for the purposes of paragraph (2)(c) or subsection (3) may prescribe different documents or parts of documents for different circumstances.

815‑25  Modified transfer pricing benefit for thin capitalisation
 (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.

815‑30  Determinations negating transfer pricing benefit
 (1) The determinations the Commissioner may make are as follows:
 (a) a determination of an amount by which the taxable income of