Introduction Details of the Section
2.Subsection (1) sets out the tests that determine whether section 83 applies. The “actual provision condition” in subsection (1)(a) has to be met. This is defined in subsection (7) of section 82. Either of the other two tests in subsection (1)(b) also needs to be met. These are that there are no diverted profits of the company for the accounting period, or the “full transfer pricing adjustment” has been made. This is defined in subsection (3).
3.Subsection (2) defines what is meant by “diverted profits”.
4.Subsection (3) describes the circumstances in which the full transfer pricing adjustment is made in the accounting period.