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  

Guide to Division 727  

SECTION 727-10   How does this Division deal with indirect value shifts?  

727-10(1)  
To prevent an inappropriate loss or gain from arising on realisation of an interest, this Division reduces the amount of the loss or gain (realisation time method). However, a choice can be made to adjust the interest ' s value for income tax purposes in a way that takes account of the indirect value shift (adjustable value method).

727-10(2)  
This Division does not create taxing events giving rise to gains or losses.