Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 725 - Direct value shifting affecting interests in companies and trusts  

Subdivision 725-D - Consequences for down interest or up interest as CGT asset  

SECTION 725-250   Table of consequences for adjustable values of interests as CGT assets  

725-250(1)  
The table in subsection (2) sets out consequences of the * direct value shift for the * adjustable values of * down interests and * up interests of which you are an * affected owner, in their character as * CGT assets.

725-250(2)  
To the extent that the * direct value shift is from * down interests specified in an item in the table to * up interests specified in that item:


(a) the * adjustable value of each of those down interests is decreased by the amount worked out under the section (if any) specified for the down interests in the last column of that item; and


(b) the adjustable value of each of those * up interests is uplifted by the amount worked out under the section (if any) specified for the up interests in that column.


Consequences of the direct value shift for adjustable values of CGT assets
Item To the extent that the direct value shift is from: To: The decrease or uplift is worked out under:
1 *down interests that:

(a) are owned by you ; and

(b) have *pre-shift gains ; and

(c) are *post-CGT assets
*up interests owned by you that do not give rise to a *taxing event generating a gain for you on those down interests under section 725-245 for the down interests: section 725-365; and

for the up interests: section 725-370
2 *down interests that:

(a) are owned by you ; and

(b) have *pre-shift gains ; and

(c) are *pre-CGT assets
*up interests owned by you that are *pre-CGT assets for the down interests: section 725-365; and

for the up interests: section 725-370
3 *down interests that:

(a) are owned by you ; and

(b) have *pre-shift gains ; and

(c) are *pre-CGT assets
*up interests owned by you that are *post-CGT assets for the down interests: section 725-365; and

for the up interests: section 725-375
4 *down interests owned by you that have *pre-shift gains *up interests owned by you that give rise to a *taxing event generating a gain on those down interests under section 725-245 for the down interests: section 725-365; and

for the up interests: section 725-375
5 *down interests owned by you that have *pre-shift losses *up interests owned by you for the down interests: section 725-380; and

for the up interests: section 725-375
6 *down interests owned by you that have *pre-shift gains *up interests owned by other *affected owners for the down interests: section 725-365
7 *down interests owned by you that have *pre-shift losses *up interests owned by other *affected owners for the down interests: section 725-380
8 *down interests owned by other *affected owners *up interests owned by you for the up interests: section 725-375
9 *down interests owned by you *up interests owned by entities that are not *affected owners (there are no decreases or uplifts)
10 *down interests owned by entities that are not *affected owners *up interests owned by you (there are no decreases or uplifts)

Reducing uplift to prevent double increase in cost base etc.

725-250(3)  


However, if, apart from paragraph (2)(b), an amount is included in the *cost base or *reduced cost base of an *up interest as a result of the *scheme under which the *direct value shift happens, the uplift in the *adjustable value of the interest under that paragraph is reduced by that amount.

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