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.