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-B - What is an indirect value shift  

SECTION 727-155   Providing economic benefits  


These are some examples of an entity providing an economic benefit to another entity:

(a) the first entity pays an amount to the other entity (in this case the *market value of the benefit is the amount of the payment);

(b) the first entity provides an asset or services to the other entity;

(c) the first entity does something that creates an asset in the hands of the other entity (for example, a company issues shares to its members);

(d) the first entity incurs a liability to the other entity, or increases a liability it already owes to the other entity;

(e) the first entity terminates all or part of a liability owed by the other entity;

(f) the first entity does something that increases the market value of an asset that the other entity holds.

These examples are not intended to limit the meaning of providing an economic benefit.

Things treated as economic benefits

This Division applies as if the ending of:

(a) a * primary equity interest or * secondary equity interest in an entity; or

(b) a right that the owner of a * primary equity interest or * secondary equity interest in an entity has because of owning the interest;

were an economic benefit that the owner of the interest provides to that entity.


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