Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 18/22)
Character Range: 6986247–6989109

entity for an income year.
 (3) If the Commissioner makes a determination under subsection (1), the Commissioner must make a determination under subsection (2), unless it is not possible or practicable for the Commissioner to do so.
Example: If section 815‑25 is relevant in working out the transfer pricing benefit an entity gets, this subsection requires the Commissioner to make a determination relating to the debt deductions of the entity.
 (4) Nothing done under subsection (2) affects the validity of a determination made under subsection (1).
 (5) The Commissioner may take such action as the Commissioner considers necessary to give effect to a determination under this section.
 (6) The Commissioner must give a copy of a determination under this section to the entity.
 (7) A failure to comply with subsection (6) does not affect the validity of the determination.

815‑35  Consequential adjustments

Consequential adjustment—associated enterprises
 (1) 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(1); and
 (b) 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