Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.470

Mere active participants

  (1)   An * equity or loan interest that an * active participant in the * scheme owns in another active participant immediately before the * IVS time is not an * affected interest in the * losing entity or in the * gaining entity unless one of the active participants is also covered by 1, 2, 3 or 4 in the table in subsection   727 - 530(1) (about who is an affected owner).

Entity that is a small business entity, or satisfies the maximum net asset value test for small business relief

  (2)   An * equity or loan interest that an entity (the owner ) owns immediately before the * IVS time is not an * affected interest in the * losing entity or in the * gaining entity if the owner:

  (a)   is a * small business entity for each income year that includes any of the * IVS period; or

  (b)   would satisfy the maximum net asset value test in section   152 - 15 throughout the * IVS period.

  (3)   If the owner is not in existence for part of the * IVS period, disregard that part   in applying subsection   (2).

Interests in superannuation entities not covered

  (4)   An * equity or loan interest in an * affected owner is not an * affected interest in the * losing entity or in the * gaining entity if the affected owner is an entity listed in section   727 - 125 (about superannuation entities) in relation to the income year in which the * IVS time happens.