Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p9
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 9/13)
Character Range: 408432–411199

or more entities.
 (2) Enough must be known about the identity of an entity covered by subsection (1) for it to be reasonable to conclude that, if:
 (a) the *presumed indirect value shift were an *indirect value shift resulting from the *scheme; and
 (b) the *IVS period for the scheme ended at the time of the *realisation event; and
 (c) that entity were the *gaining entity for the indirect value shift;
 (d) the *prospective losing entity were the *losing entity for the indirect value shift; and
either or both of these would be satisfied for the indirect value shift:
 (e) section 727‑105 (Ultimate controller test); and
 (f) section 727‑110 (Common‑ownership nexus test).
 (3) Enough must be known about the identity of the entity referred to in subsection (2) for it also to be reasonable to conclude that, in relation to either or both of the following:
 (a) the *prospective losing entity *providing one or more economic benefits to that entity *in connection with the *scheme; or
 (b) that entity providing one or more economic benefits to the prospective losing entity in connection with the scheme;
that entity and the prospective losing entity were not, are not, will not be, or would not be, dealing with each other at *arm's length.
 (4) Each entity that is covered by subsection (1), and for which subsections (2) and (3) are satisfied, is called a prospective gaining entity for the *scheme.
 (5) The deadline is:
 (a) if the entity that owned the *equity or loan interest immediately before the *realisation event must lodge an *income tax return for the income year in which the event happens—the time by which the return must be lodged; or
 (b) otherwise—the end of the 6 months immediately after that income year.

727‑865  How other provisions of this Division apply to support this Subdivision
 (1) To avoid doubt, these provisions apply for the purposes of working out whether there has been a *presumed indirect value shift and, if so, the amount of it:
 (a) sections 727‑155, 727‑160 and 727‑165 (about economic benefits);
 (b) section 727‑315 (Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000).
 (2) For the purposes of section 727‑850, these provisions:
 (a) Subdivision 727‑C (Exclusions), except section 727‑260 (about a shift down a wholly‑owned chain of entities);
 (b) sections 727‑700 to 727‑725 (about 95% services indirect value shifts), except subsection 727‑700(1);
apply to the *presumed indirect value shift on the assumptions set out in subsection (3).
 (3) The assumptions are:
 (a) the *presumed indirect value shift is an *indirect value shift resulting from the *scheme; and
 (b) the *prospective losing entity for the scheme is the *losing entity for that indirect value shift;