Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 727.230

Services provided by losing entity to gaining entity for at least their direct cost

    An * indirect value shift does not have consequences under this Division if:

  (a)   to the extent of at least 95% of their total * market value, the * greater benefits consist entirely of:

  (i)   a right to have services that are covered by section   727 - 240 provided directly by the losing entity to the gaining entity; or

  (ii)   services that are covered by section   727 - 240 and have been, are being, or are to be, so provided;

    or both; and

  (b)   there are * lesser benefits and, as at the * IVS time, the total market value of the lesser benefits is not less than the total of:

  (i)   the present value of the direct cost to the losing entity of providing the services; and

  (ii)   the present value of a reasonable allocation of the total direct cost to the losing entity of providing services that include the first - mentioned services (so far as it is not already covered by subparagraph   (i)).

To work out the costs and present values referred to in paragraph   (b),
see section   727 - 245.


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