INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 727.1 Application of Division 727

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 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.

  (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.

  (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 .