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  

Affected interests

SECTION 727-470   Exceptions  

Mere active participants

727-470(1)    
An ^* equity or loan interest that an ^* active participant in the ^* scheme owns in another active participant immediately before the ^* IVS time is not an ^* affected interest in the ^* losing entity or in the ^* gaining entity unless one of the active participants is also covered by 1, 2, 3 or 4 in the table in subsection 727-530(1) (about who is an affected owner).

Entity that is a small business entity, or satisfies the maximum net asset value test for small business relief

727-470(2)    
An ^* equity or loan interest that an entity (the owner ) owns immediately before the ^* IVS time is not an ^* affected interest in the ^* losing entity or in the ^* gaining entity if the owner:

(a) is a *small business entity for each income year that includes any of the ^* IVS period; or

(b) would satisfy the maximum net asset value test in section 152-15 throughout the ^* IVS period.

727-470(3)    
If the owner is not in existence for part of the ^* IVS period, disregard that part in applying subsection (2).

Interests in superannuation entities not covered

727-470(4)    
An ^* equity or loan interest in an ^* affected owner is not an ^* affected interest in the ^* losing entity or in the ^* gaining entity if the affected owner is an entity listed in section 727-125 (about superannuation entities) in relation to the income year in which the ^* IVS time happens.