the Commissioner amends a DPT assessment to decrease the liability of the taxpayer to diverted profits tax; and

that increase is attributable to that decrease.

to ensure that the Australian tax payable by significant global entities properly reflects the economic substance of the activities that those entities carry on in Australia; and

to prevent those entities from reducing the amount of Australian tax they pay by diverting profits offshore through contrived arrangements between related parties.

(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

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:

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

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;

the relevant taxpayer is a significant global entity for the year of income mentioned in paragraph (a); and

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

that foreign entity:

is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or

is otherwise connected with the scheme or any part of the scheme; and

the relevant taxpayer is not any of the following:

(i) a managed investment trust (within the meaning of the Income Tax Assessment Act 1997);

an entity covered by paragraph 275-20(4)(f) of that Act (foreign collective investment vehicle with a wide membership);

an entity covered by paragraph 275-20(4)(h) of that Act (entity owned by foreign government etc.) that is a foreign entity;

a complying superannuation entity (within the meaning of that Act);

a foreign pension fund (within the meaning of that Act); and

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:

section 177K ($25 million income test);

section 177L (sufficient foreign tax test);

section 177M (sufficient economic substance test).

the matters in subsection 177D(2);

without limiting subsection 177D(2), the extent to which non-tax financial benefits that are quantifiable have resulted, will result, or may reasonably be expected to result, from the scheme;

the result, in relation to the operation of any foreign law relating to taxation, that (but for this Part) would be achieved by the scheme;

the amount of the tax benefit mentioned in paragraph (1)(b).

(a) Income Tax Assessment Act 1997 (about thin capitalisation) applies to the relevant taxpayer for the year of income mentioned in paragraph (1)(a); andDivision 820 of the

the DPT tax benefit includes all or part of a debt deduction (within the meaning of that Act); and

the calculation of the amount of the DPT tax benefit involves applying a rate to a debt interest (within the meaning of that Act).

the foreign entity mentioned in paragraph (1)(d) is a CFC (within the meaning of Part X); and

an amount of attributable income (within the meaning of that Part) of the foreign entity has been included as a result of the operation of that Part in the assessable income of:

the relevant taxpayer; or

an associate (within the meaning given by section 318) of the relevant taxpayer, if the associate is a Part X Australian resident (within the meaning of that Part) and is not a trust or partnership.

would not have been so included if the scheme had not been entered into or carried out; and

is directly referable to the DPT tax benefit.

does not limit section 177D, 177DA, 177E, 177EA or 177EB; and

is not limited by those sections.

the assessable income of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a);

the exempt income of the relevant taxpayer for that year of income;

the non-assessable non-exempt income of the relevant taxpayer for that year of income;

the assessable income of each entity covered by subsection (2) for that year of income;

if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a)—the amount of the DPT tax benefit.

the entity is an associate (within the meaning given by section 318) of the relevant taxpayer; and

both the entity and the relevant taxpayer:

are members of the same global group; and

are significant global entities because they are members of that group.

for all situations; or

for specified situations.

the entity is a foreign entity; and

the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and

the entity:

is the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme; or

is otherwise connected with the scheme or any part of the scheme.

if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the tax benefit multiplied by the standard corporate tax rate; or

otherwise—the amount of the DPT tax benefit.

the entity is the relevant taxpayer or an associate (within the meaning given by section 318) of the relevant taxpayer; and

any of the following apply:

the entity entered into or carried out the scheme or any part of the scheme;

the entity is otherwise connected with the scheme or any part of the scheme.

the functions that the entity performs in connection with the scheme, taking into account assets used and risks assumed by the entity in connection with the scheme; and

(b) the documents covered by Income Tax Assessment Act 1997, to the extent that they are relevant to the matters mentioned in paragraph (a) or to any other aspect of the determination; andsection 815-135 of the

any other relevant matters.

section 177P applies to the relevant taxpayer mentioned in section 177J; and

the Commissioner cannot make a determination under subsection 177F(1) or (2A) in relation to the scheme merely because of section 177J.

if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to one DPT tax benefit—the DPT base amount for that DPT tax benefit; or

if this Part applies to a scheme in respect of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a), in relation to more than one DPT tax benefit—the sum of the DPT base amounts for those DPT tax benefits.

if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a), (b), (ba) or (bc)—the amount of the DPT tax benefit; or

otherwise—the amount of the DPT tax benefit divided by the standard corporate tax rate.

starts at the beginning of the day by which the amount was due to be paid; and

finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

the diverted profits tax or shortfall interest charge;

general interest charge on any of the diverted profits tax or shortfall interest charge.

the entity has a liability to pay the *diverted profits tax; and

either:

the entity makes a payment to satisfy the liability (in whole or in part); or

a credit, or an *RBA surplus, is applied to discharge or reduce the liability.

either:

the entity receives an amount as a refund; or

the Commissioner applies a credit, or an *RBA surplus, against a liability or liabilities of the entity; and

the refund of the amount, or the application of the credit, represents in whole or in part a return to the entity of an amount paid or applied to satisfy the entity’s liability to pay *diverted profits tax.

apply the provisions of that Division with the modifications set out in sections 145-10 to 145-25; and

disregard sections 155-15, 155-20, 155-25, 155-30, 155-40, 155-45, 155-50, 155-55 and 155-70.

(a) starting on the day on which the Commissioner first gives the entity that is the subject of the assessment a notice of assessment under Income Tax Assessment Act 1936 for the income year mentioned in paragraph 177J(1)(a) of the Income Tax Assessment Act 1936 (as that paragraph applies in relation to the amount of diverted profits tax); andPart IV of the

ending on the last day of the period of 7 years starting the day after that day.

the period:

starting on the day on which the Commissioner first gives notice of the assessment to the entity that is the subject of the assessment under section 155-10; and

ending on the last day of the period of 12 months starting the day after that day; or

if:

the entity, by written notice given to the Commissioner, specifies a shorter period in accordance with subsection (2); and

the Federal Court of Australia has not made an order under subsection (3) in respect of the written notice;

if the period of review is extended under subsection 155-35(3) or (4)—the period as so extended.

start on the day mentioned in subparagraph (1)(a)(i); and

end on a day that is at least 30 days after the day on which the entity gives the written notice to the Commissioner.

the Commissioner has started to examine the entity’s affairs in relation to the assessment; and

the Commissioner has not completed the examination within the shorter period specified in the written notice; and

the Commissioner, within 30 days after the day on which the entity gives the written notice to the Commissioner, applies to the Court for the order; and

the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the shorter period specified in the written notice, because of:

any action taken by the entity; or

any failure by the entity to take action that it would have been reasonable for the entity to take.

an order may be made under subsection 155-35(3) only once; and

consent may be given under subsection 155-35(4) only once.

have regard only to the provisions of that Part mentioned in subsection (3); and

apply those provisions with the modifications set out in subsection (4); and

disregard the other provisions of that Part; and

apply section 145-25 (restricted DPT evidence).

sections 14ZL and 14ZP;

subsection 14ZR(1);

subsection 14ZZ(1);

Division 5 (apart from section 14ZZS).

treat the Commissioner’s decision to make the *DPT assessment as an objection decision;

treat subsection 14ZZ(1) as reading “The entity that is the subject of the DPT assessment may appeal to the Federal Court of Australia against the objection decision.”;

treat the reference in within 60 days after the person appealing is served with notice of the decision” as being a reference to “within 60 days after the end of the period of review mentioned in section 145-15 in Schedule 1”;section 14ZZN to “

disregard paragraph 14ZZO(a);

treat paragraph 14ZZO(b) as reading “the appellant has the burden of proving that the DPT assessment is excessive or otherwise incorrect and what the DPT assessment should have been”;

treat the reference in the Commissioner’s decision to make the DPT assessment.section 14ZZR to a taxation decision as being a reference to

(a) the entity that is the subject of the *DPT assessment (or an associate (Income Tax Assessment Act 1936) of that entity), had in its custody or under its control at a time before, during or after the *period of review; andwithin the meaning of section 318 of the

the Commissioner did not have in his or her custody or under his or her control at any time in the period of review.

the Commissioner consents to the admission of the restricted DPT evidence in accordance with subsection (4); or

the court in which the proceedings take place considers that the admission of the restricted DPT evidence is necessary in the interests of justice; or

the restricted DPT evidence is expert evidence that:

comes into existence after the *period of review; and

is based on evidence that the Commissioner had in his or her custody or under his or her control at any time in the period of review.

whether, if the *restricted DPT evidence were not admissible in evidence in the proceedings, the remaining information or documents that are relevant to the proceedings are, or are likely to be, misleading; and

whether it would have been reasonable for the entity that is the subject of the *DPT assessment (or the associate of that entity mentioned in paragraph (2)(a)) to have given the Commissioner the restricted DPT evidence within the *period of review.

the Commissioner has given an entity an assessment of income tax for an income year; and

the Commissioner subsequently gives the entity a *DPT assessment for that income year.

the Commissioner amended the assessment of income tax mentioned in paragraph (1)(a) on the day that the Commissioner gave the entity the *DPT assessment mentioned in paragraph (1)(b); and

the entity were liable to pay an additional amount of income tax because of that amendment; and

the Commissioner made that amendment on the basis that the *tax benefit or tax benefits to which the DPT assessment related were cancelled.

beginning at the start of the day on which *diverted profits tax under the entity’s first *DPT assessment for that income year was due to be paid, or would have been due to be paid if there had been any; and

ending at the end of the day before the day on which the Commissioner gave the entity notice of the amended *DPT assessment.

(a) on or before the day (your trigger day) applying to you under subsection (4) for that table item:

the Commissioner has made an assessment of your income tax for one or more income years; or

(ii) the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to you, or in relation to the *global parent entity for the group of which you are a member, for a period; or

you have given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and

you were a *significant global entity for:

whichever of those income years or periods that ends on the most recent day; or

if more than one of them ends on that most recent day—any of those income years or periods that ends on that most recent day.

the Commissioner makes an assessment of your income tax for the income year that includes your trigger day; and

you are not a *significant global entity for that income year.

for any of table items 1 to 3C—the day you made the statement referred to in that item;

for any of table items 4 to 6—the day you made the statement to which that item relates and that is referred to in subsection 284-75(2);

for table item 7—the day the return, notice or other document to which that item relates, and that is referred to in subsection 284-75(3), was required to be given.

the failure referred to in subsection (2) is a failure to give a return, notice or other document on time or in the *approved form, as mentioned in subsection 286-75(1); and

on or before the day the return, notice or other document is required to be given:

the Commissioner has made an assessment of the entity’s income tax for one or more income years; or

(ii) the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to the entity, or in relation to the *global parent entity for the group of which the entity is a member, for a period; or

the entity has given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and

the entity was a *significant global entity for:

whichever of those income years or periods that ends on the most recent day; or

if more than one of them ends on that most recent day—any of those income years or periods that ends on that most recent day.

the Commissioner makes an assessment of the entity’s income tax for the income year that includes that day; and

the entity is not a *significant global entity for that income year.

(a) statements referred to in Taxation Administration Act 1953 that are made at or after the application time;section 284-75 in Schedule 1 to the

returns, notices or other documents referred to in that section that are required to be given at or after the application time.

1 July 2017; and

the day this Schedule commences.

the Aligning Transfer Pricing Outcomes with Value Creation, Actions 8-10 - 2015 Final Reports, of the Organisation for Economic Cooperation and Development, published on 5 October 2015;