Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 20/22)
Character Range: 6991250–6994283

Commissioner a written request to make a determination under this section relating to the entity. The Commissioner must decide whether or not to grant the request, and give the entity notice of the Commissioner's decision.
 (10) If the entity is dissatisfied with the Commissioner's decision, the entity may object, in the manner set out in Part IVC of the Taxation Administration Act 1953, against that decision.

815‑40  No double taxation
 (1) The amount of a *transfer pricing benefit that is negated under this Subdivision for an entity is not to be taken into account again under another provision of this Act to increase the entity's assessable income, reduce the entity's deductions or reduce a *net capital loss of the entity.
 (2) Subsection (1) has effect despite former section 136AB of the Income Tax Assessment Act 1936.
 (3) Nothing in this Subdivision limits Division 820 (about thin capitalisation) in its application to further reduce *debt deductions of an entity.

Subdivision 815‑B—Arm's length principle for cross‑border conditions between entities

Guide to Subdivision 815‑B

815‑101  What this Subdivision is about

      This Subdivision applies if an entity would otherwise get a tax advantage in Australia from cross‑border conditions that are inconsistent with the internationally accepted arm's length principle.
      The entity is treated for income tax and withholding tax purposes as if arm's length conditions had operated.

Table of sections

Operative provisions
815‑105 Object
815‑110 Operation of Subdivision
815‑115 Substitution of arm's length conditions
815‑120 When an entity gets a transfer pricing benefit
815‑125 Meaning of arm's length conditions
815‑130 Relevance of actual commercial or financial relations
815‑135 Guidance
815‑140 Modification for thin capitalisation
815‑145 Consequential adjustments
815‑150 Amendment of assessments

Operative provisions

815‑105  Object
 (1) The object of this Subdivision is to ensure that the amount brought to tax in Australia from cross‑border conditions between entities is not less than it would be if those conditions reflected:
 (a) the arm's length contribution made by Australian operations through functions performed, assets used and risks assumed; and
 (b) the conditions that might be expected to operate between entities dealing at *arm's length.
 (2) The Subdivision does this by specifying that, where an entity would otherwise get a tax advantage from actual conditions that differ from *arm's length conditions, the arm's length conditions are taken to operate for income tax and withholding tax purposes.

815‑110  Operation of Subdivision
 (1) Nothing in the provisions of this Act other than this Subdivision limits the operation of this Subdivision.
 (2) Nothing in this Subdivision limits Division 820 (about thin capitalisation) in its application to reduce, or further reduce, *debt deductions of an entity.

815‑115  Substitution of arm's length conditions
 (1) For the purposes covered by subsection (2), if an entity