Income Tax Assessment Act 1997
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Hide history noteSECTION 727-805 Has there been a disaggregated attributable increase? 727-805(1)
This section sets out how to determine whether an * indirect value shift has produced, for the owner of an * equity or loan interest, a disaggregated attributable increase in the *market value of the interest and, if so, the amount of it.
727-805(2)
Make a reasonable estimate of the *market value of the interest at the * IVS time, but disregarding:
(a) all effects on the market value of the interest during the * IVS period, except effects that are reasonably attributable to the * indirect value shift; and
(b) the effects (if any) of the indirect value shift on the market value of * equity or loan interests, or * indirect equity or loan interests, in the losing entity.
(This result is called the notional resulting market value .)
Note:
Paragraph (2)(b) is necessary because the market value of the interest may also have been affected by the decrease in the market value of interests in the losing entity, because the entity in which the interest is held had direct or indirect interests in both the losing entity and the gaining entity.
In such a case, the increase in adjustable value under this Division will usually be offset by a reduction under this Division.
727-805(3)
If the notional resulting market value is greater than a reasonable estimate of the *market value (the old market value ) of the interest:
(a) at the start of the * IVS period; or
(b) if the owner last began to own the interest during that period - when the owner last began to own the interest;
the difference is the disaggregated attributable increase .
727-805(4)
The * indirect value shift has not produced a disaggregated attributable increase for the owner of the interest if the notional resulting market value is less than or equal to the old market value.
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