• Legal database
Legal database

Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

View history reference
 View history note

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

View history reference
 View history note

Subdivision 725-F - Value adjustments and taxed gains  

View history reference
 View history note

SECTION 725-370  

725-370   Uplifts in adjustable values of up interests under certain table items  

View history reference

Use the following method statement to work out the uplift in * adjustable value of an * up interest under:


(a) item 1 or 2 of the table in subsection 725-250(2) ; or


(b) item 1 of the table in subsection 725-335(3) . Method statement


Step 1.

If the *market value of the * up interest increases because of the * direct value shift, group together all up interests of the kind referred to in the relevant item that:

  • (a) immediately before the * increase time, had the same * adjustable value as the up interest; and
  • (b) sustained the same increase in market value as the up interest because of the * direct value shift.

    • If the * up interest is issued at a * discount, group together all * up interests of the kind referred to in the relevant item that:

  • (c) immediately before the * increase time, had the same * adjustable value as the up interest; and
  • (d) because of the direct value shift, are issued at the same discount as the up interest.


    • Step 2.

    The notional adjustable value of the value shifted from the * down interests referred to in the relevant item to all the * up interests referred to in that item has already been worked out under one or more applications of step 3 of the method statement in section 725-365 .


    Step 3.

    Use the following formula to work out how much of that notional adjustable value is attributable to the value shifted to the group of * up interests referred to in step 1 of this method statement:


      Notional
    adjustable value    		 × Sum of the *market values,
    immediately after the *increase
    time, of all *up interests in the group
    Sum of the *market values,
    immediately after the *increase time,
    of all *up interests referred to
    in the relevant item    		  


    Step 4.

    The uplift in the * adjustable value of the * up interest under the relevant item is equal to:


      The amount worked out under step 3
    Number of interests in that group of
    *up interests    		  

     View history note

    View surrounding sectionsView surrounding sectionsBack to top

    This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.