INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 727 - Indirect value shifting affecting interests in companies and trusts, and arising from non-arm ' s length dealings  

Subdivision 727-A - Scope of the indirect value shifting rules  

SECTION 727-110   Common-ownership nexus test (if both losing and gaining entities are closely held)  

727-110(1)  
Or, it must be the case that:


(a) at some time during the * IVS period, neither the * losing entity nor the * gaining entity has 300 or more members (in the case of a company) or 300 or more beneficiaries (in the case of a trust); and


(b) the losing entity and the gaining entity have a * common-ownership nexus within the IVS period.

For the concept of IVS period , see section 727-150 .

For the concept of common-ownership nexus , see section 727-400 .

727-110(2)  
Section 124-810 (under which certain companies and trusts are not regarded as having 300 or more members or beneficiaries) also applies for the purposes of this Division.

727-110(3)  
In addition, this Division applies to a * non-fixed trust as if it did not have 300 or more beneficiaries.


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