INCOME TAX ASSESSMENT ACT 1997 - SECT 727.100 When an indirect value shift has consequences under this Division
INCOME TAX ASSESSMENT ACT 1997 - SECT 727.100
When an indirect value shift has consequences under this DivisionAn * indirect value shift (see Subdivision 727 - B) has consequences under this Division if, and only if:
(a) the * losing entity is at the time of the indirect value shift a company or trust (except one listed in section 727 - 125 (about superannuation entities)); and
(b) in relation to either or both of the following:
(i) the losing entity * providing one or more economic benefits to the gaining entity * in connection with the * scheme from which the indirect value shift results;
(ii) the gaining entity providing one or more economic benefits to the losing entity in connection with the scheme;
the 2 entities are not dealing with each other at * arm's length; and
(c) either or both of sections 727 - 105 and 727 - 110 are satisfied; and
(d) no exclusion in Subdivision 727 - C applies.
Note 1: The consequences for direct and indirect interests in the losing entity or in the gaining entity are set out in Subdivision 727 - F. If those consequences are to be worked out using the realisation time method (under Subdivision 727 - G), there are further exclusions for certain 95% services indirect value shifts: see section 727 - 700.
Note 2: An indirect value shift does not have consequences for interests in the losing entity or gaining entity owned immediately before the IVS time by an entity that:
• is a small business entity for each income year that includes any of the IVS period; or
• would satisfy the maximum net asset value test in section 152 - 15 throughout the IVS period.
See subsection 727 - 470(2).