Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 727-770 Reduction under the adjustable value method 727-770(1)
This section sets out how to work out the amount (if any) by which the * adjustable value of an * affected interest in the * losing entity is reduced.
727-770(2)
First, work out under section 727-775 whether the * indirect value shift has produced for the owner of the interest a * disaggregated attributable decrease in the *market value of the interest.
727-770(3)
If it has not, the interest ' s * adjustable value is not reduced because of the * indirect value shift.
727-770(4)
If it has, the amount (if any) by which the interest ' s * adjustable value is reduced is worked out on a * loss-focussed basis under section 727-780 .
727-770(5)
However, if a choice is made in accordance with section 727-550 for the reduction not to be worked out on a * loss-focussed basis, the reduction is equal to the * disaggregated attributable decrease.
Reduction not to exceed reasonable amount
727-770(6)
If the reduction worked out as provided in subsection (4) or (5) is not reasonable in the circumstances, having regard to the objects of this Division, the interest ' s * adjustable value is instead reduced by so much of that reduction as is reasonable in the circumstances, having regard to those objects.
Note:
The main object of this Division is set out in section 727-95.
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.
