9Arm’s length transactions

#### 9 Arm’s length transactions (1) For the purposes of this Act, whenever it is necessary to determine: (a) the production value or sales value of any motor vehicles, engines or engine components sold by a participant to another person; or (b) the production value or sales value of any other goods or services sold by a participant to another person; that production value or sales value is to be determined on the basis that the participant and other person are at arm’s length. (2) For the purposes of this Act: (a) whenever it is necessary to determine the value of any investment in plant and equipment, or in research and development, undertaken by a participant; and (b) that investment involves the participant entering into a transaction with another person; the value of that investment is to be determined on the basis that the participant and the other person are at arm’s length. (3) For the purposes of this Act, the Minister may make guidelines: (a) for the purposes of determining the circumstances when the parties to a transaction referred to in subsection (1) or (2) are to be treated as not being at arm’s length; and (b) if the parties to a sale of motor vehicles, engines or engine components referred to in paragraph (1)(a) are to be treated, in accordance with the guidelines, as not being at arm’s length—for the purpose of determining what would have been the production value or sales value of the motor vehicles, engines or engine components to which the transaction relates had the parties been at arm’s length; and (c) if the parties to a sale of other goods or services referred to in paragraph (1)(b) are to be treated, in accordance with the guidelines, as not being at arm’s length—for the purpose of determining what would have been the production value or sales value of the goods or services to which the transaction relates had the parties been at arm’s length; and (d) if the parties to a transaction relating to an investment in plant and equipment referred to in paragraph (2)(a) are to be treated, in accordance with the guidelines, as not being at arm’s length—for the purpose of determining what would have been the amount of investment in plant and equipment to which the transaction relates had the parties been at arm’s length; and (e) if the parties to a transaction relating to an investment in research and development referred to in paragraph (2)(b) are to be treated, in accordance with the guidelines, as not being at arm’s length—for the purpose of determining what would have been the amount of investment in research and development to which the transaction relates had the parties been at arm’s length. (4) Guidelines made for the purposes of subsection (3) are disallowable instruments within the meaning of section 46A of the Acts Interpretation Act 1901.