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INCOME TAX ASSESSMENT ACT 1997 - SECT 727.600 What this Subdivision is about

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.600

What this Subdivision is about

Under the realisation time method:

  losses on realisation of affected interests in the losing entity are reduced; and

  gains on realisation of affected interests in the gaining entity are reduced, within limits worked out by reference to the reductions in losses on affected interests in the losing entity; and

  certain 95% services indirect value shifts are disregarded.

This Subdivision also explains how its reduction of a loss or gain affects CGT assets, trading stock and revenue assets.

Table of sections

Operative provisions

727 - 610   Consequences of indirect value shift

727 - 615   Reduction of loss on realisation event for affected interest in losing entity

727 - 620   Reduction of gain on realisation event for affected interest in gaining entity

727 - 625   Total gain reductions not to exceed total loss reductions

727 - 630   How cap in section   727 - 625 applies if affected interest is also trading stock or a revenue asset

727 - 635   Splitting an equity or loan interest

727 - 640   Merging equity or loan interests

727 - 645   Effect of CGT roll - over

Further exclusion for certain 95% services indirect value shifts if realisation time method must be used

727 - 700   When 95% services indirect value shift is excluded

95% services indirect value shifts that are not excluded

727 - 705   Another provision of the income tax law affects amount related to services by at least $100,000

727 - 710   Ongoing or recent service arrangement reduces value of losing entity by at least $100,000

727 - 715   Service arrangements reduce value of losing entity that is a group service provider by at least $500,000

727 - 720   Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000

727 - 725   Meaning of predominantly - services indirect value shift

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