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INCOME TAX ASSESSMENT ACT 1997 - SECT 727.865

How other provisions of this Division apply to support this Subdivision

             (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.



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