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-G - The realisation time method  

Operative provisions

SECTION 727-635  

727-635   Splitting an equity or loan interest  

If an ^* equity or loan interest in the ^* losing entity or in the ^* gaining entity is split into 2 or more equity or loan interests at or after the ^* IVS time:

(a) each of the 2 or more interests inherits whatever characteristics would have been relevant to applying this Subdivision to the first interest if the split had not happened; and

(b) those characteristics include characteristics the first interest has inherited because of any other application or applications of this section or section 727-640 ; and

(c) if a characteristic of the first interest involves an amount or quantity, the amount or quantity for that characteristic as inherited by each of the 2 or more interests is a reasonable proportion of the amount or quantity for that characteristic of the first interest.