Section 177K — Income Tax Assessment Act 1936: Diverted profits tax—$25 million income test

(1) This section applies in relation to the relevant taxpayer, in relation to the DPT tax benefit, if the sum of the following does not exceed $25 million: (a) the assessable income of the relevant taxpayer for the year of income mentioned in paragraph 177J(1)(a); (b) the exempt income of the relevant taxpayer for that year of income; (c) the non-assessable non-exempt income of the relevant taxpayer for that year of income; (d) the assessable income of each entity covered by subsection (2) for that year of income; (e) if the DPT tax benefit is a tax benefit mentioned in paragraph 177C(1)(a)—the amount of the DPT tax benefit. (2) An entity is covered by this subsection if for the year of income mentioned in paragraph 177J(1)(a): (a) the entity is an associate (within the meaning given by section 318) of the relevant taxpayer; and (b) both the entity and the relevant taxpayer: (i) are members of the same global group; and (ii) are significant global entities because they are members of that group.