Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 725.230

  (1)   The consequences are different if:

  (a)   a decrease in the * market value of a * down interest of which you are an * affected owner is reasonably attributable to the target entity proposing to buy back that interest for less than its market value; and

  (b)   the target entity does buy back that down interest; and

  (c)   subsection   159GZZZQ(2) of the Income Tax Assessment Act 1936 treats you as having received the down interest's market value worked out as if the buy - back had not occurred and was never proposed to occur.

  (2)   The * adjustable value of the * down interest is not reduced, and there is no * taxing event generating a gain.

Note:   The down interest is not dealt with here because it is already dealt with in Division   16K of Part   III of the Income Tax Assessment Act 1936 .

  (3)   Also, to the extent that the * direct value shift is from the * down interest to * up interests of which you are an * affected owner, uplifts in the * adjustable value of the up interests are worked out under either or both of:

  (a)   item   8 of the table in subsection   725 - 250(2); and

  (b)   item   9 of the table in subsection   725 - 335(3);

as if the down interest were one owned by another affected owner.

Table of sections

725 - 240   CGT consequences; meaning of adjustable value

725 - 245   Table of taxing events generating a gain for interests as CGT assets

725 - 250   Table of consequences for adjustable values of interests as CGT assets

725 - 255   Multiple CGT consequences for the same down interest or up interest