Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

View history reference
 View history note

Division 725 - Direct value shifting affecting interests in companies and trusts  

View history reference
 View history note

Subdivision 725-F - Value adjustments and taxed gains  

View history reference
 View history note

SECTION 725-370  

725-370   Uplifts in adjustable values of up interests under certain table items  

View history reference

Use the following method statement to work out the uplift in * adjustable value of an * up interest under:


(a) item 1 or 2 of the table in subsection 725-250(2) ; or


(b) item 1 of the table in subsection 725-335(3) . Method statement


Step 1.

If the *market value of the * up interest increases because of the * direct value shift, group together all up interests of the kind referred to in the relevant item that:

  • (a) immediately before the * increase time, had the same * adjustable value as the up interest; and
  • (b) sustained the same increase in market value as the up interest because of the * direct value shift.

    • If the * up interest is issued at a * discount, group together all * up interests of the kind referred to in the relevant item that:

  • (c) immediately before the * increase time, had the same * adjustable value as the up interest; and
  • (d) because of the direct value shift, are issued at the same discount as the up interest.


    • Step 2.

    The notional adjustable value of the value shifted from the * down interests referred to in the relevant item to all the * up interests referred to in that item has already been worked out under one or more applications of step 3 of the method statement in section 725-365 .


    Step 3.

    Use the following formula to work out how much of that notional adjustable value is attributable to the value shifted to the group of * up interests referred to in step 1 of this method statement:


      Notional
    adjustable value    		 × Sum of the *market values,
    immediately after the *increase
    time, of all *up interests in the group
    Sum of the *market values,
    immediately after the *increase time,
    of all *up interests referred to
    in the relevant item    		  


    Step 4.

    The uplift in the * adjustable value of the * up interest under the relevant item is equal to:


      The amount worked out under step 3
    Number of interests in that group of
    *up interests    		  

     View history note

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.