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-A - Scope of the direct value shifting rules  

SECTION 725-50  

725-50   When a direct value shift has consequences under this Division  

A ^* direct value shift under a ^* scheme involving ^* equity or loan interests in an entity (the target entity ) has consequences for you under this Division if, and only if:

(a) the target entity is a company or trust at some time during the ^* scheme period; and

(b) section 725-55 (Controlling entity test) is satisfied; and

(c) section 725-65 (Cause of the value shift) is satisfied; and

(d) you are an ^* affected owner of a ^* down interest, or an ^* affected owner of an ^* up interest, or both; and

(e) neither of sections 725-90 and 725-95 (about direct value shifts that are reversed) applies.

Note:

For a down interest of which you are an affected owner, the direct value shift has consequences under this Division only if section 725-70 (about material decrease in market value) is satisfied.