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 725-375  

725-375   Uplifts in adjustable values of up interests under other 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 3, 4, 5 or 8 of the table in subsection 725-250(2) ; or


(b) item 2, 3, 6 or 9 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 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 are issued at a discount of the same amount as the up interest because of the direct value shift.


Step 2.

The value shifted to that group of * up interests from the * down interests referred to in the relevant item is the amount worked out using the formula:


  Sum of the group
increases or
discounts		 × Sum of the decreases
in *market value of
those *down interests		  
  Total value of the *direct value shift  

where:

sum of the group increases or discounts means (as appropriate):

  • (a) the sum of the increases in *market value of all * up interests in the group because of the * direct value shift; or
  • (b) the sum of the * discounts at which all * up interests in the group were issued because of the * direct value shift.

    • total value of the direct value shift means:

  • (a) if the sum of the decreases in *market value of all * down interests because of the * direct value shift is equal to or greater than the sum of the increases in market value of all * up interests and all * discounts given because of the shift - the sum of the decreases; or
  • (b) if the sum of the decreases in market value of all down interests because of the direct value shift is less than the sum of the increases in market value of all up interests and all discounts given because of the shift - the sum of the increases and discounts.


    • Step 3.

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


                                          Value shifted                                    
    Number of *up interests in the group    		  

     View history note

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.