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-F - Consequences of an indirect value shift  

Affected interests

SECTION 727-470   Exceptions  

Mere active participants

727-470(1)  
An * equity or loan interest that an * active participant in the * scheme owns in another active participant immediately before the * IVS time is not an * affected interest in the * losing entity or in the * gaining entity unless one of the active participants is also covered by 1, 2, 3 or 4 in the table in subsection 727-530(1) (about who is an affected owner). Entity that is a small business entity, or satisfies the maximum net asset value test for small business relief

727-470(2)  
An * equity or loan interest that an entity (the owner ) owns immediately before the * IVS time is not an * affected interest in the * losing entity or in the * gaining entity if the owner:


(a) is a *small business entity for each income year that includes any of the * IVS period; or


(b) would satisfy the maximum net asset value test in section 152-15 throughout the * IVS period.

727-470(3)  
If the owner is not in existence for part of the * IVS period, disregard that part in applying subsection (2). Interests in superannuation entities not covered

727-470(4)  
An * equity or loan interest in an * affected owner is not an * affected interest in the * losing entity or in the * gaining entity if the affected owner is an entity listed in section 727-125 (about superannuation entities) in relation to the income year in which the * IVS time happens.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.