Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 727.530

Who are the affected owners

             (1)  The table sets out the affected owners for the * indirect value shift.

 

Affected owners

Item

In this case:

The affected owners include:

1

At least one condition in section 727- 105 (ultimate controller test) is satisfied

each * ultimate controller because of which a condition in that section is satisfied; and

each entity that, at a time during the * IVS period when such an ultimate controller * controlled (for value shifting purposes) the losing entity, was an * intermediate controller of the losing entity; and

each entity that, at a time during the IVS period when such an ultimate controller controlled (for value shifting purposes) the gaining entity, was an intermediate controller of the gaining entity

2

The conditions in section 727-110 (common-ownership nexus test) are satisfied in respect of:

(a) one or more times; or

(b) one or more sets of 2 times

each * ultimate owner who is one of 2 or more ultimate owners because of whom the condition in the applicable item of that table is satisfied in respect of any of those times; and

each entity through which ownership or rights are traced to such an ultimate owner in applying the applicable item of that table in respect of any of those times

3

Any case

the * losing entity and the * gaining entity

4

Any case

each entity that, at any time after the * scheme was entered into, is an * associate of an entity that is an affected owner because of item 1, 2 or 3 of this table

5

Any case

each * active participant in the * scheme

             (2)  An entity is an intermediate controller of another entity if, and only if:

                     (a)  the first entity * controls (for value shifting purposes) the other entity; and

                     (b)  the first entity is * controlled (for value shifting purposes) by an * ultimate controller of the other entity.

Active participants (if both losing and gaining entities are closely held)

             (3)  An entity (the first entity ) is an active participant in the * scheme if:

                     (a)  at some time during the * IVS period, neither the losing entity nor the gaining entity has 300 or more members (in the case of a company) or 300 or more beneficiaries (in the case of a trust); and

                     (b)  the first entity:

                              (i)  actively participated in, or directly facilitated, the entering into of the * scheme; or

                             (ii)  at some time during the * IVS period actively participated in, or directly facilitated, the carrying out of the scheme;

                            (whether or not it did so at the direction of some other entity); and

                     (c)  at some time during the * IVS period, the first entity owned:

                              (i)  an * equity or loan interest in the losing entity or in the gaining entity; or

                             (ii)  an * indirect equity or loan interest in the losing entity or in the gaining entity; and

                     (d)  the first entity is neither the losing entity nor the gaining entity.

Note:          Subsections 727-110(2) and (3) contain rules about when an entity is treated as having or not having 300 or more members or beneficiaries.

Choices about method to be used



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