Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 727 - Indirect value shifting affecting interests in companies and trusts, and arising from non-arm ' s length dealings  

Subdivision 727-B - What is an indirect value shift  

SECTION 727-155   Providing economic benefits  

Examples

727-155(1)    
These are some examples of an entity providing an economic benefit to another entity:

(a) the first entity pays an amount to the other entity (in this case the *market value of the benefit is the amount of the payment);

(b) the first entity provides an asset or services to the other entity;

(c) the first entity does something that creates an asset in the hands of the other entity (for example, a company issues shares to its members);

(d) the first entity incurs a liability to the other entity, or increases a liability it already owes to the other entity;

(e) the first entity terminates all or part of a liability owed by the other entity;

(f) the first entity does something that increases the market value of an asset that the other entity holds.

727-155(2)    
These examples are not intended to limit the meaning of providing an economic benefit.

Things treated as economic benefits

727-155(3)    
This Division applies as if the ending of:

(a) a ^* primary equity interest or ^* secondary equity interest in an entity; or

(b) a right that the owner of a ^* primary equity interest or ^* secondary equity interest in an entity has because of owning the interest;

were an economic benefit that the owner of the interest provides to that entity.