INCOME TAX (TRANSITIONAL PROVISIONS) 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  

SECTION 727-1   Application of Division 727  

727-1(1)  


Division 727 , as inserted by the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 and amended by the New Business Tax System (Consolidation and Other Measures) Act 2003 , applies to a scheme entered into on or after 1 July 2002.

727-1(2)  
It also applies to a scheme entered into on or after 27 June 2002, but only in relation to:


(a) an indirect value shift that happens under the scheme on or after 1 July 2002; or


(b) a presumed indirect value shift that happens under the scheme and affects a realisation event that happens on or after 1 July 2002.

727-1(3)  
Subsection (2) does not apply to an indirect value shift, or a presumed indirect value shift, if:


(a) the economic benefits taken into account in determining that the scheme has resulted in that indirect value shift or presumed indirect value shift include economic benefits provided by:


(i) an act referred to in Division 138 of the Income Tax Assessment Act 1997 as the trigger event; or

(ii) an event or act referred to in Division 139 of the Income Tax Assessment Act 1997 as the trigger event; and


(b) the act was done, or the event happened, on or after 27 June 2002 and before 1 July 2002.

Note:

In that case, the consequences of the trigger event are worked out under Division 138 or 139 of the Income Tax Assessment Act 1997 : see items 13 and 14 of Schedule 15 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 .


 

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.