Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 727-780 Working out the reduction on a loss-focussed basis 727-780(1)
Use the table in subsection (2) of this section to work out on a loss-focussed basis the amount (if any) by which the interest ' s * adjustable value is reduced.
727-780(2)
This involves comparing the old * market value, and the notional resulting market value, with the interest ' s * adjustable value (the old adjustable value ) immediately before the * IVS time.
| Reduction under the attributable decrease method | |||
| Item | If the old market value: | And the notional resulting market value: | This is the result: |
| 1 | is greater than or equal to the old adjustable value | is less than the old adjustable value | the *adjustable value is reduced to the notional resulting market value |
| 2 | is greater than or equal to the old adjustable value | is greater than or equal to the old adjustable value | the *adjustable value is not reduced because of the *indirect value shift |
| 3 | is less than the old adjustable value | is less than the old adjustable value | the *adjustable value is reduced by the amount of the *disaggregated attributable decrease |
Note 1:
Because of item 1, the indirect value shift cannot cause a loss to arise on disposal of the interest.
Note 2:
Because of item 3 the loss already embedded in the interest is preserved, but the indirect value shift does not increase it.
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