S.L. 123.207 Art. 3Ascertaining the total income.

In ascertaining the total income of any company in accordance with the Act:

(a) where any amount incurred or due in the year preceding the year of assessment under any cross-border arrangement to which these rules apply differs from the arm’s length amount, it shall be deemed that the arm’s length amount was incurred or due instead of the actual amount incurred or due;

(b) where any amount accrued or derived in the year preceding the year of assessment under any cross-border arrangement to which these rules apply differs from the arm’s length amount, it shall be deemed that the arm’s length amount was accrued or derived instead of the actual amount accrued or derived:

Provided that any adjustment made in terms of paragraphs (a) or (b) shall apply exclusively for the purpose of ascertaining the total income of one (1) or more parties to the cross-border arrangement as the case may be and shall not affect any other person.