INCOME TAX (TRANSITIONAL PROVISIONS) 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  

SECTION 727-1   Application of Division 727  

727-1(1)  


Division 727 , as inserted by the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 and amended by the New Business Tax System (Consolidation and Other Measures) Act 2003 , applies to a scheme entered into on or after 1 July 2002.

727-1(2)  
It also applies to a scheme entered into on or after 27 June 2002, but only in relation to:


(a) an indirect value shift that happens under the scheme on or after 1 July 2002; or


(b) a presumed indirect value shift that happens under the scheme and affects a realisation event that happens on or after 1 July 2002.

727-1(3)  
Subsection (2) does not apply to an indirect value shift, or a presumed indirect value shift, if:


(a) the economic benefits taken into account in determining that the scheme has resulted in that indirect value shift or presumed indirect value shift include economic benefits provided by:


(i) an act referred to in Division 138 of the Income Tax Assessment Act 1997 as the trigger event; or

(ii) an event or act referred to in Division 139 of the Income Tax Assessment Act 1997 as the trigger event; and


(b) the act was done, or the event happened, on or after 27 June 2002 and before 1 July 2002.

Note:

In that case, the consequences of the trigger event are worked out under Division 138 or 139 of the Income Tax Assessment Act 1997 : see items 13 and 14 of Schedule 15 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 .




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