Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 8/20)
Character Range: 6648156–6650887

for interests in the losing entity or gaining entity owned immediately before the IVS time by an entity that:
• is a small business entity for each income year that includes any of the IVS period; or
• would satisfy the maximum net asset value test in section 152‑15 throughout the IVS period.
 See subsection 727‑470(2).

727‑105  Ultimate controller test
  It must be the case that, at some time during the *IVS period:
 (a) the *losing entity and the *gaining entity have the same *ultimate controller; or
 (b) the ultimate controller of the losing entity is the same entity that was the ultimate controller of the gaining entity at a different time during that period; or
 (c) the gaining entity is the ultimate controller of the losing entity; or
 (d) the losing entity is the ultimate controller of the gaining entity.
For the concept of IVS period, see section 727‑150.
For the concept of ultimate controller, see section 727‑350.

727‑110  Common‑ownership nexus test (if both losing and gaining entities are closely held)
 (1) Or, it must be the case that:
 (a) at some time during the *IVS period, neither the *losing entity nor the *gaining entity has 300 or more members (in the case of a company) or 300 or more beneficiaries (in the case of a trust); and
 (b) the losing entity and the gaining entity have a *common‑ownership nexus within the IVS period.
For the concept of IVS period, see section 727‑150.
For the concept of common‑ownership nexus, see section 727‑400.
 (2) Section 124‑810 (under which certain companies and trusts are not regarded as having 300 or more members or beneficiaries) also applies for the purposes of this Division.
 (3) In addition, this Division applies to a *non‑fixed trust as if it did not have 300 or more beneficiaries.

727‑125  No consequences if losing entity is a complying superannuation entity etc.
  An *indirect value shift has no consequences under this Division if the *losing entity is one of the following in relation to the income year in which the indirect value shift happens:
 (a) a *complying superannuation entity;
 (b) a *non‑complying superannuation fund;
 (c) a *non‑complying approved deposit fund.

Subdivision 727‑B—What is an indirect value shift

Table of sections
727‑150 How to determine whether a scheme results in an indirect value shift
727‑155 Providing economic benefits
727‑160 When an economic benefit is provided in connection with a scheme
727‑165 Preventing double‑counting of economic benefits

727‑150  How to determine whether a scheme results in an indirect value shift
 (1) A *scheme can result in one or more *indirect value shifts only if one or more economic benefits have been, are being, or are to be, *provided *in connection with