Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 725.320

Consequences for down interest or up interest as a revenue asset

             (1)  The consequences of the * direct value shift for your * revenue assets are of one or more of these 3 kinds:

                     (a)  the * adjustable values of * down interests of which you are an * affected owner are reduced (see subsection (2));

                     (b)  the adjustable values of * up interests of which you are an affected owner are uplifted (see subsection (3));

                     (c)  one or more * taxing events generating a gain for down interests of which you are an affected owner (see subsection (5)).

Effect of reduction or uplift of adjustable value

             (2)  If the * adjustable value of a * down interest that is your * revenue asset is decreased under section 725-335, you are treated as if:

                     (a)  * immediately before the * decrease time, you had sold the interest to someone else for its * adjustable value immediately before the decrease time; and

                     (b)  immediately afterwards, you had bought the interest back for the reduced adjustable value; and

                     (c)  from the time when you bought it back, the interest continued to be a revenue asset, for the same reasons as it was a revenue asset before you sold it.

             (3)  If the * adjustable value of an * up interest that is your * revenue asset is uplifted under section 725-335, you are treated as if:

                     (a)  * immediately before the * increase time, you had sold the interest to someone else for its * adjustable value immediately before the increase time; and

                     (b)  immediately afterwards, you had bought the interest back for the uplifted adjustable value; and

                     (c)  from the time when you bought it back, the interest continued to be a revenue asset, for the same reasons as it was a revenue asset before you sold it.

             (4)  However, the uplift in * adjustable value is taken into account only to the extent that the amount of the uplift is still reflected in the * market value of the interest when it is disposed of or otherwise realised.

Taxing event generating a gain

             (5)  For each * taxing event generating a gain under an item in the table in subsection 725-335(3), the gain is included in your assessable income for the income year in which the * decrease time happens.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback