Income Tax Assessment Act 1997
The table sets out the affected owners for the * indirect value shift.
|Item||In this case:||The affected owners include:|
|1||At least one condition in section 727-105 (ultimate controller test) is satisfied||each *ultimate controller because of which a condition in that section is satisfied; and
each entity that, at a time during the *IVS period when such an ultimate controller *controlled (for value shifting purposes) the losing entity, was an *intermediate controller of the losing entity; and
|each entity that, at a time during the IVS period when such an ultimate controller controlled (for value shifting purposes) the gaining entity, was an intermediate controller of the gaining entity|
|2||The conditions in section 727-110 (common-ownership nexus test) are satisfied in respect of:
(a) one or more times; or
(b) one or more sets of 2 times
|each *ultimate owner who is one of 2 or more ultimate owners because of whom the condition in the applicable item of that table is satisfied in respect of any of those times; and
each entity through which ownership or rights are traced to such an ultimate owner in applying the applicable item of that table in respect of any of those times
|3||Any case||the *losing entity and the *gaining entity|
|4||Any case||each entity that, at any time after the *scheme was entered into, is an *associate of an entity that is an affected owner because of item 1, 2 or 3 of this table|
|5||Any case||each *active participant in the *scheme|
An entity is an intermediate controller of another entity if, and only if:
(a) the first entity * controls (for value shifting purposes) the other entity; and
(b) the first entity is * controlled (for value shifting purposes) by an * ultimate controller of the other entity. Active participants (if both losing and gaining entities are closely held) 727-530(3)
An entity (the first entity ) is an active participant in the * scheme if:
(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 first entity:
(i) actively participated in, or directly facilitated, the entering into of the * scheme; or
(whether or not it did so at the direction of some other entity); and
(ii) at some time during the * IVS period actively participated in, or directly facilitated, the carrying out of the scheme;
(c) at some time during the * IVS period, the first entity owned:
(i) an * equity or loan interest in the losing entity or in the gaining entity; or
(ii) an * indirect equity or loan interest in the losing entity or in the gaining entity; and
(d) the first entity is neither the losing entity nor the gaining entity.
Subsections 727-110(2) and (3) contain rules about when an entity is treated as having or not having 300 or more members or beneficiaries.
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