Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 16/20)
Character Range: 6667557–6670279

base or *reduced cost base (or both) of some or all of the *primary equity interests referred to in subsection (1) changes because of the distribution or right.
 (4) This subsection covers an amount that, because of the distribution or right, is taken into account:
 (a) under section 116‑20 in working out the *capital proceeds of a *CGT event that happens during any income year to some or all of the *primary equity interests referred to in subsection (1); or
 (b) in working out a *capital gain that an entity makes from CGT event E4 or G1 happening during any income year to some or all of those primary equity interests; or
 (c) in working out whether a loss or gain is *realised for income tax purposes by a *realisation event that happens to some or all of those primary equity interests (in their character as *trading stock or *revenue assets).

Application of section to deemed dividend
 (5) If a *corporate tax entity makes a *distribution that is not otherwise a distribution of income or capital, this section applies as if the distribution were a distribution of income or capital the entity made.
Note: Subsection (5) extends this section to cover something that is taken to be a dividend paid by a company. Compare item 1 of the table in subsection 960‑120(1).

Miscellaneous

727‑260  Shift down a wholly‑owned chain of entities
 (1) An *indirect value shift does not have consequences under this Division if the *gaining entity is a *wholly‑owned subsidiary of the *losing entity throughout the *IVS period.

Exception: impact on market value of primary loan interest
 (2) However, subsection (1) does not apply if the *indirect value shift has produced a *disaggregated attributable decrease, in the *market value of an *affected interest in the *losing entity that is also a *primary loan interest in an entity covered by subsection (3), for the owner of the interest.
 (3) This subsection covers:
 (a) the *losing entity; and
 (b) an entity that owns *primary equity interests in an entity that this subsection covers because of one or more previous applications of it.

Subdivision 727‑D—Working out the market value of economic benefits

Table of sections
727‑300 What the rules in this Subdivision are for
727‑315 Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000

727‑300  What the rules in this Subdivision are for
  This Subdivision is used in determining whether there has been an *indirect value shift and, if so:
 (a) whether it has consequences under this Division; and
 (b) if it does, the amount of it.

727‑315  Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000
 (1) This Division applies to an economic