Income Tax Assessment Act 1997
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Hide history noteSECTION 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.
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