Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.865

  (1)   To avoid doubt, these provisions apply for the purposes of working out whether there has been a * presumed indirect value shift and, if so, the amount of it:

  (a)   sections   727 - 155, 727 - 160 and 727 - 165 (about economic benefits);

  (b)   section   727 - 315 (Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000).

  (2)   For the purposes of section   727 - 850, these provisions:

  (a)   Subdivision   727 - C (Exclusions), except section   727 - 260 (about a shift down a wholly - owned chain of entities);

  (b)   sections   727 - 700 to 727 - 725 (about 95% services indirect value shifts), except subsection   727 - 700(1);

apply to the * presumed indirect value shift on the assumptions set out in subsection   (3).

  (3)   The assumptions are:

  (a)   the * presumed indirect value shift is an * indirect value shift resulting from the * scheme; and

  (b)   the * prospective losing entity for the scheme is the * losing entity for that indirect value shift; and

  (c)   each * prospective gaining entity for the scheme is the * gaining entity for that indirect value shift; and

  (d)   the * greater benefits under the presumed indirect value shift are the greater benefits under that indirect value shift; and

  (e)   the * lesser benefits (if any) under the presumed indirect value shift are the lesser benefits under that indirect value shift; and

  (f)   the time of the realisation event mentioned in paragraph   727 - 850(1)(c) is the * IVS time for the scheme; and

  (g)   the * IVS period for the scheme ends at the time of the realisation event; and

  (h)   section   727 - 105 (Ultimate controller test) is satisfied for that indirect value shift according to what it is reasonable to conclude under subsection   727 - 860(2) as applying to the presumed indirect value shift; and

  (i)   section   727 - 110 (Common - ownership nexus test) is satisfied for that indirect value shift according to what it is reasonable to conclude under subsection   727 - 860(2) as applying to the presumed indirect value shift; and

  (j)   a reference to the realisation event mentioned in subsection   727 - 700(1) were a reference to the realisation event mentioned in paragraph   727 - 850(1)(c); and

  (k)   the interest to which the realisation event mentioned in paragraph   727 - 850(1)(c) happens were the interest referred to in paragraph   727 - 700(1)(a); and

  (l)   a reference in any of sections   727 - 700 to 727 - 725 (about 95% services indirect value shifts), except subsection   727 - 700(1), to the owner were a reference to the entity that, at the time of the realisation event mentioned in paragraph   727 - 850(1)(c), owns the interest to which the event happens.

  (4)   Sections   727 - 635 and 727 - 640 affect how this Subdivision applies to * equity or loan interests, and * indirect equity or loan interests, in the * prospective losing entity that are split or merged during the period:

  (a)   starting when the * scheme is entered into; and

  (b)   ending at the time of the * realisation event mentioned in paragraph   727 - 850(1)(c);

in the same way as those sections affect how Subdivision   727 - G would apply to those interests on the assumptions set out in subsection   (3) of this section.

  (5)   The application of a provision because of this section is additional to, and is not intended to limit, any other application of the provision.