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  

Choices about method to be used

SECTION 727-550   Choosing the adjustable value method  

727-550(1)  
This section sets out rules for:


(a) choosing to use the * adjustable value method to work out the consequences of an * indirect value shift; or


(b) choosing (when using the adjustable value method) not to work out on a * loss-focussed basis the reductions in the * adjustable values of * affected interests. Who makes the choice

727-550(2)  
The choice must be made in accordance with the table.


Who makes the choice
Item In this case: The choice must be made by:
1 If the conditions in section 727-110 (common-ownership nexus test) are satisfied jointly by the *ultimate owners because of whom the condition in the applicable item of the table in section 727-400 is satisfied
2 Item 1 does not apply, and there is an entity: that entity
(a) who is the sole *ultimate controller because of whom the conditions in section 727-105 (ultimate controller test) are satisfied; or
(b) who would be that sole ultimate controller if sections 727-355 to 727-375 were applied ignoring that entity ' s *associates
3 Neither of items 1 and 2 applies jointly by the 2 or more *ultimate controllers because of whom the conditions in section 727-105 (ultimate controller test) are satisfied

When choice must be made

727-550(3)  
The choice must be made within 2 years after the first * realisation event that happens to an * affected interest at or after the IVS time. Choice binds all affected owners

727-550(4)  
The choice binds all * affected owners for the * indirect value shift.


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