Who is affected and how
Work through the following three scenarios to determine if you are affected by the general value shifting regime (GVSR) rules.
Do you have interests in an entity whose dealings (such as providing loans or other services, or transferring assets) with another entity are neither at market value nor arm's length?
Is the difference in value of what is given and received more than $50,000?
If you answered yes to both questions the rules for indirect value shifting may affect you.
Do you have interests in a company or trust in which equity or loan interests have been issued or bought back at other than market value, or varied such that the values of some interests have increased while others have decreased?
Did the interests that decreased in value do so by a total of at least $150,000?
If you answered yes to both questions the rules for direct value shifts on interests may affect you.
Have you made a loss on:
- a non-depreciable asset over which a right (such as a lease) was granted to an associate of yours for less than market value, or
- an asset (including a share or trust interest) that was acquired under a capital gains tax (CGT) rollover as a replacement for such an asset?
Did the right decrease the value of the asset by more than $50,000?
If you answered yes to both questions the rules for direct value shifts by creating rights may affect you.
If you answered no to at least one of the questions from each of the three scenarios the rules don't affect you now.