Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177j:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177J (pt 1/3)
Character Range: 1658504–1661057

177J  Diverted profits tax—application

Scheme for a purpose including obtaining a tax benefit etc.
 (1) This Part also applies to a scheme, in relation to a tax benefit (the DPT tax benefit) if:
 (a) a taxpayer (a relevant taxpayer) has obtained, or would but for section 177F obtain, the DPT tax benefit in connection with the scheme, in a year of income; and
 (b) it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a principal purpose of, or for more than one principal purpose that includes a purpose of:
 (i) enabling the relevant taxpayer to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of the relevant taxpayer's liabilities to tax under a foreign law, in connection with the scheme; or
 (ii) enabling the relevant taxpayer and another taxpayer (or other taxpayers) each to obtain a tax benefit, or both to obtain a tax benefit and to reduce one or more of their liabilities to tax under a foreign law, in connection with the scheme;
  whether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers; and
 (c) the relevant taxpayer is a significant global entity for the year of income mentioned in paragraph (a); and
 (d) a foreign entity is an associate (within the meaning of section 318) of the relevant taxpayer at any time in the year of income mentioned in paragraph (a); and
 (e) that foreign entity:
 (i) is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or
 (ii) is otherwise connected with the scheme or any part of the scheme; and
 (f) the relevant taxpayer is not any of the following:
 (i) a managed investment trust (within the meaning of the Income Tax Assessment Act 1997);
 (ii) an entity covered by paragraph 275‑20(4)(f) of that Act (foreign collective investment vehicle with a wide membership);
 (iii) an entity covered by paragraph 275‑20(4)(h) of that Act (entity owned by foreign government etc.) that is a foreign entity;
 (iv) a complying superannuation entity (within the meaning of that Act);
 (v) a foreign pension fund (within the meaning of that Act); and
 (g) it is reasonable to conclude that none of the following sections apply in relation to the relevant taxpayer, in relation to the DPT tax benefit:
 (i) section 177K ($25 million income test);
 (ii) section 177L