Attribution of profits to permanent establishments in Australia – Part 1: Subdivision 815-C
Published Date: 26 Apr 2024
Subdivision 815-C of the Income Tax Assessment Act 1997 (Cth) (ITAA97) was introduced more than 10 years ago to modernise Australia’s transfer pricing rules with respect to the attribution of profits to permanent establishments (PEs) (ie cross-border dealings within single legal entities) and complements Subdiv 815-B ITAA97, which was introduced at the same time and applies to cross-border dealings between separate legal entities. While there are evident similarities between Subdiv 815-C and Subdiv 815-B, there are also important differences and additional complexity involved with Subdiv 815-C compared with Subdiv 815-B.
Part 1 of this article considers the interpretation of Subdiv 815-C and describes a framework to assist with determining whether Subdiv 815-C might or might not apply in particular circumstances. Part 2 will consider the attribution of profits to PEs under the business profits article in Australia’s tax treaties.
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- Published By: Damian Preshaw CTA
- Published On:26 Apr 2024
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