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-F - Consequences of an indirect value shift  

Choices about method to be used

SECTION 727-550   Choosing the adjustable value method  

727-550(1)    
This section sets out rules for:

(a) choosing to use the ^* adjustable value method to work out the consequences of an ^* indirect value shift; or

(b) choosing (when using the adjustable value method) not to work out on a ^* loss-focussed basis the reductions in the ^* adjustable values of ^* affected interests.

Who makes the choice

727-550(2)    
The choice must be made in accordance with the table.

Who makes the choice
Item	In this case:	The choice must be made by:
1	If the conditions in section 727-110 (common-ownership nexus test) are satisfied	jointly by the *ultimate owners because of whom the condition in the applicable item of the table in section 727-400 is satisfied
2	Item 1 does not apply, and there is an entity:	that entity
	(a) who is the sole *ultimate controller because of whom the conditions in section 727-105 (ultimate controller test) are satisfied; or
	(b) who would be that sole ultimate controller if sections 727-355 to 727-375 were applied ignoring that entity ' s *associates
3	Neither of items 1 and 2 applies	jointly by the 2 or more *ultimate controllers because of whom the conditions in section 727-105 (ultimate controller test) are satisfied

When choice must be made

727-550(3)    
The choice must be made within 2 years after the first ^* realisation event that happens to an ^* affected interest at or after the IVS time.

Choice binds all affected owners

727-550(4)    
The choice binds all ^* affected owners for the ^* indirect value shift.