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 725-325   Adjustable value of revenue asset  

725-325(1)    
If a ^* down interest is your ^* revenue asset, its adjustable value immediately before the ^* decrease time is the total of the amounts that would be subtracted from the gross disposal proceeds in calculating any profit or loss on disposal of the interest if you disposed of it immediately before the decrease time.

725-325(2)    

If an ^* up interest is your ^* revenue asset and it increases in *market value because of the ^* direct value shift, its adjustable value immediately before the ^* increase time is the total of the amounts that would be subtracted from the gross disposal proceeds in calculating any profit or loss on disposal of the interest if you disposed of it immediately before the increase time.

725-325(3)    
If an ^* up interest is your ^* revenue asset and it is issued at a ^* discount, it is taken to have an adjustable value immediately before it is issued equal to the consideration paid or given by you for the interest.

Note:

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 725-320 ). 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.