Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 725 - Direct value shifting affecting interests in companies and trusts  

Subdivision 725-E - Consequences for down interest or up interest as trading stock or a revenue asset  

SECTION 725-315  

725-315   Adjustable value of trading stock  

If a ^* down interest or ^* up interest is your *trading stock, its adjustable value at a particular time is:

(a) if the interest has been trading stock of yours ever since the start of the income year in which that time occurs - its ^* value as trading stock at the start of the income year; or

(b) otherwise - its cost.

Note 1:

If an interest has been affected by an earlier direct value shift during the same income year, it will be treated as having already been sold and repurchased (because of an earlier application of section 725-310 ). As a result, the cost on repurchase becomes its adjustable value immediately before the decrease time or increase time for the later direct value shift.

Note 2:

The adjustable value of an interest that is an up interest because it was issued at a discount is worked out under paragraph (b).