Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 16/22)
Character Range: 6981364–6984034

of the taxable income of the entity for an income year would be greater than its actual amount; or
 (ii) the amount of a tax loss of the entity for an income year would be less than its actual amount; or
 (iii) the amount of a *net capital loss of the entity for an income year would be less than its actual amount.
The amount of the transfer pricing benefit is the difference between the amounts mentioned in subparagraph (c)(i), (ii) or (iii) (as the case requires).

Nil amounts
 (3) For the purposes of working out whether an entity gets a *transfer pricing benefit, and of negating that benefit under subsection 815‑30(1):
 (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 of a nil amount.

Multiple transfer pricing benefits
 (4) To avoid doubt, an entity may get 2 or more *transfer pricing benefits, in one or more income years, in relation to 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