Income Tax Assessment Act 1997



Division 727 - Indirect value shifting affecting interests in companies and trusts, and arising from non-arm ' s length dealings  

Subdivision 727-A - Scope of the indirect value shifting rules  

SECTION 727-110   Common-ownership nexus test (if both losing and gaining entities are closely held)  

Or, it must be the case that:

(a) at some time during the * IVS period, neither the * losing entity nor the * gaining entity has 300 or more members (in the case of a company) or 300 or more beneficiaries (in the case of a trust); and

(b) the losing entity and the gaining entity have a * common-ownership nexus within the IVS period.

For the concept of IVS period , see section 727-150 .

For the concept of common-ownership nexus , see section 727-400 .

Section 124-810 (under which certain companies and trusts are not regarded as having 300 or more members or beneficiaries) also applies for the purposes of this Division.

In addition, this Division applies to a * non-fixed trust as if it did not have 300 or more beneficiaries.


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