Income Tax Assessment 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  

Subdivision 727-C - Exclusions  

Indirect value shifts involving services

SECTION 727-230  

727-230   Services provided by losing entity to gaining entity for at least their direct cost  

An ^* indirect value shift does not have consequences under this Division if:

(a)    

to the extent of at least 95% of their total *market value, the ^* greater benefits consist entirely of:

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

(ii) services that are covered by section 727-240 and have been, are being, or are to be, so provided;

or both; and

(b)    there are ^* lesser benefits and, as at the ^* IVS time, the total market value of the lesser benefits is not less than the total of:

(i) the present value of the direct cost to the losing entity of providing the services; and

(ii) the present value of a reasonable allocation of the total direct cost to the losing entity of providing services that include the first-mentioned services (so far as it is not already covered by subparagraph (i)).

To work out the costs and present values referred to in paragraph (b) , see section 727-245 .