Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 4/5)
Character Range: 6689412–6692028

the IVS time; and
 (ii) is an *indirect equity or loan interest in the losing entity;
(except one covered by an exception in section 727‑470).

727‑465  Affected interests in the gaining entity
  If immediately before the *IVS time the *gaining entity is a company or trust (except one listed in section 727‑125 (about superannuation entities)), these are the affected interests in the gaining entity:
 (a) each *equity or loan interest that an *affected owner owns in the gaining entity immediately before the *IVS time; and
 (b) each equity or loan interest that:
 (i) an affected owner owns in another affected owner immediately before the IVS time; and
 (ii) is an *indirect equity or loan interest in the gaining entity;
(except one covered by an exception in section 727‑470).

727‑470  Exceptions

Mere active participants
 (1) An *equity or loan interest that an *active participant in the *scheme owns in another active participant immediately before the *IVS time is not an *affected interest in the *losing entity or in the *gaining entity unless one of the active participants is also covered by 1, 2, 3 or 4 in the table in subsection 727‑530(1) (about who is an affected owner).

Entity that is a small business entity, or satisfies the maximum net asset value test for small business relief
 (2) An *equity or loan interest that an entity (the owner) owns immediately before the *IVS time is not an *affected interest in the *losing entity or in the *gaining entity if the owner:
 (a) is a *small business entity for each income year that includes any of the *IVS period; or
 (b) would satisfy the maximum net asset value test in section 152‑15 throughout the *IVS period.
 (3) If the owner is not in existence for part of the *IVS period, disregard that part in applying subsection (2).

Interests in superannuation entities not covered
 (4) An *equity or loan interest in an *affected owner is not an *affected interest in the *losing entity or in the *gaining entity if the affected owner is an entity listed in section 727‑125 (about superannuation entities) in relation to the income year in which the *IVS time happens.

727‑520  Equity or loan interest and related terms
 (1) An equity or loan interest in an entity is a *primary interest, or a *secondary interest, in the entity.
 (2) A primary interest in an entity is a *primary equity interest, or a *primary loan interest, in the entity.
 (3) The meaning of primary equity interest in an entity is set out in the table.

Primary equity interests
Item                      In the case of this kind of entity:  Primary equity interest means: