New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 25   Value shifting

Income Tax Assessment Act 1997

10   After subsection 727-800(6)

Insert:

(6A) The reduction of *adjustable value that is to be taken into account under subparagraph (6)(a)(i) for an *equity or loan interest in the *losing entity is:

(a) if the interest is *trading stock immediately before the *IVS time - the one worked out on the basis of the interest's adjustable value under subsection 727-835(2); or

(b) otherwise - the greater or greatest of these:

(i) the reduction of the interest's *cost base;

(ii) the reduction of the interest's *reduced cost base;

(iii) the reduction (if any) worked out on the basis of the interest's adjustable value under subsection 727-840(2) (about revenue assets).