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-H - The adjustable value method  

SECTION 727-755   Consequences of indirect value shift  

727-755(1)  
This Subdivision sets out the adjustable value method of working out the consequences (if any) of an * indirect value shift.

727-755(2)  
If those consequences are to be worked out using that method:


(a) the * adjustable value of each * affected interest in the * losing entity is reduced as provided in this Subdivision; and


(b) if the * gaining entity is a company or trust (except one listed in section 727-125 (about superannuation entities)) immediately before the * IVS time, the * adjustable value of each * affected interest in the * gaining entity is uplifted as provided in this Subdivision.

727-755(3)  
The consequences for the * affected interest depend on its character. There are consequences for the interest in its character as a * CGT asset. However, if the interest is also * trading stock or a * revenue asset, there are additional consequences for it in that character.


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.