94Alteration of tax liability or credit if affected by non‑arm’s length transaction

#### 94 Alteration of tax liability or credit if affected by non‑arm’s length transaction (1) This section applies to a taxpayer if: (a) the taxpayer (or an associate) has been a party to a non‑arm’s length transaction; and (b) if the transaction had instead been an arm’s length transaction, it would have been the case (or could reasonably be expected to have been the case) that: (i) the liability of the taxpayer to tax on the non‑arm’s length transaction, or any other transaction, would have been increased; or (ii) the entitlement of the taxpayer to a credit in connection with the non‑arm’s length transaction, or any other transaction, would have been reduced. (2) The liability or credit is taken always to have been the amount that it would have been (or could reasonably be expected to have been) if it had been based on an arm’s length transaction instead of on the non‑arm’s length transaction.