Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.710

  (1)   Either or both of these must be true:

  (a)   when the * realisation event mentioned in subsection   727 - 700(1) happens, some or all of the services mentioned in paragraph   727 - 700(2)(a) or (b) have not yet been provided; or

  (b)   some or all of those services have been provided in the income year (of the * losing entity) in which the realisation event happens, or in the previous income year.

  (2)   It must be reasonable to conclude that the total (the total market value ) of the * market values, immediately before the * realisation event, of * primary interests in the * losing entity then owned by * affected owners is less than it would have been if none of the following had happened:

  (a)   the * 95% services indirect value shift; and

  (b)   all other * predominantly - services indirect value shifts that satisfy subsection   (1) (or that would satisfy it if they were * 95% services indirect value shifts).

  (3)   It must also be reasonable to conclude that the total * market value is less than it would have been by at least:

  (a)   $100,000, if the total of the * adjustable values, immediately before the * realisation event, of the * primary interests referred to in subsection   (2) is less than or equal to $2,000,000; or

  (b)   5% of the total of those * adjustable values, if that total is greater than $2,000,000 and less than or equal to $10,000,000; or

  (c)   $500,000, if that total is greater than $10,000,000.

  (4)   For the purposes of subsections   (2) and (3), disregard an * indirect value shift referred to in paragraph   (2)(a) or (b) if services are provided directly by the * losing entity to the * gaining entity under the * scheme before the income year (of the losing entity) before the one in which the * realisation event happened.