Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 15/22)
Character Range: 6978806–6981564

but dealing wholly independently.

815‑10  Transfer pricing benefit may be negated
 (1) The Commissioner may make a determination mentioned in subsection 815‑30(1), in writing, for the purpose of negating a *transfer pricing benefit an entity gets.

Treaty requirement
 (2) However, this section only applies to an entity if:
 (a) the entity gets the *transfer pricing benefit under subsection 815‑15(1) at a time when an *international tax agreement containing an *associated enterprises article applies to the entity; or
 (b) the entity gets the transfer pricing benefit under subsection 815‑15(2) at a time when an international tax agreement containing a *business profits article applies to the entity.
Note: This Subdivision does not apply to income years to which Subdivisions 815‑B and 815‑C apply: see section 815‑1 of the Income Tax (Transitional Provisions) Act 1997.

815‑15  When an entity gets a transfer pricing benefit

Transfer pricing benefit—associated enterprises
 (1) An entity gets a transfer pricing benefit if:
 (a) the entity is an Australian resident; and
 (b) the requirements in the *associated enterprises article for the application of that article to the entity are met; and
 (c) an amount of profits which, but for the conditions mentioned in the article, might have been expected to accrue to the entity, has, by reason of those conditions, not so accrued; and
 (d) had that amount of profits so accrued to the entity:
 (i) the amount 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 (d)(i), (ii) or (iii) (as the case requires).

Transfer pricing benefit—business profits
 (2) A foreign resident entity gets a transfer pricing benefit if:
 (a) the entity has a permanent establishment (within the meaning of the *international tax agreement) in Australia; and
 (b) the amount of profits attributed to the permanent establishment falls short of the amount of profits the permanent establishment might be expected to make if it were a distinct and separate entity engaged, and dealing, in the manner mentioned in the *business profits article; and
 (c) had the profits attributed to the permanent establishment included that shortfall:
 (i) the amount 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;