Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 815.220

  (1)   An entity gets a transfer pricing benefit from the attribution of profits to a * PE of the entity if:

  (a)   the amount of profits (the actual profits ) attributed to the PE differs from the * arm's length profits for the PE; and

  (b)   had the arm's length profits, instead of the actual profits, been attributed to the PE, one or more of the following would, apart from this Subdivision, apply:

  (i)   the amount of the entity's taxable income for an income year would be greater ;

  (ii)   the amount of the entity's loss of a particular * sort for an income year would be less ;

  (iii)   the amount of the entity's * tax offsets for an income year would be less .

Nil amounts

  (2)   For the purposes of this section:

  (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 loss of a particular * sort for an income year as having a loss of that sort for the year of a nil amount; and

  (c)   treat an entity that has no * tax offsets for an income year as having tax offsets for the year of a nil amount.