Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.530

  (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.