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 727-520   Equity or loan interest and related terms  

727-520(1)    
An equity or loan interest in an entity is a ^* primary interest, or a ^* secondary interest, in the entity.

727-520(2)    
A primary interest in an entity is a ^* primary equity interest, or a ^* primary loan interest, in the entity.

727-520(3)    
The meaning of primary equity interest in an entity is set out in the table.

Primary equity interests
Item	In the case of this kind of entity:	Primary equity interest means:
1	a company	a *share in the company; or
		an interest as joint owner (including as tenant in common) of a *share in the company
2	a trust	any of these:
		(a) an interest in the trust income or trust capital; or
		(b) any other interest in the trust; or
		(c) an interest as joint owner (including as tenant in common) of an interest covered by paragraph (a) or (b)

727-520(4)    
A primary loan interest in an entity is:

(a) a loan to the entity; or

(b) an interest as joint owner (including as tenant in common) of a loan to the entity.

727-520(5)    
A secondary interest in an entity is a ^* secondary equity interest, or a ^* secondary loan interest, in the entity.

727-520(6)    
A secondary equity interest in an entity is a right or option:

(a) to ^* acquire an existing ^* primary equity interest in the entity; or

(b) to have the entity issue a new primary equity interest.

727-520(7)    
A secondary loan interest in an entity is a right or option:

(a) to ^* acquire an existing ^* primary loan interest in the entity; or

(b) to have the entity issue a new primary loan interest.