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 727-230   Transitional exclusion for certain indirect value shifts relating mainly to services  

727-230(1)  
An indirect value shift does not have consequences under Division 727 of the Income Tax Assessment Act 1997 if, to the extent of at least 95% of their total market value, the greater benefits consist entirely of:


(a) a right to have services that are covered by section 727-240 of that Act provided directly by the losing entity to the gaining entity; or


(b) services that are covered by that section and have been, are being, or are to be, so provided;

or both, and the IVS time for the scheme that results in the indirect value shift is before:


(c) unless paragraph (d) applies - the start of the losing entity's 2003-2004 income year; or


(d) if the losing entity's 2002-2003 income year ends before 30 June 2003 - the start of the losing entity's 2004-2005 income year. How subsection (1) applies to a presumed indirect value shift

727-230(2)  
For the purposes of section 727-850 (about a presumed indirect value shift affecting a realisation event) of the Income Tax Assessment Act 1997 , subsection (1) of this section applies to the presumed indirect value shift:


(a) on the assumptions set out in subsection 727-865(3) of that Act; and


(b) as if the exclusion in subsection (1) of this section were an exclusion in Subdivision 727-C of that Act.




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