Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p6
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 6/13)
Character Range: 401040–403729

of the amounts that would be subtracted from the gross disposal proceeds in calculating any profit or loss on disposal of the interest if the entity disposed of it at that time.
 (3) If this Division reduces or uplifts the interest's *adjustable value, the entity is treated as if:
 (a) immediately before the adjustment time, the entity had sold the interest to someone else (at *arm's length and in the ordinary course of business) for its adjustable value immediately before that time; and
 (b) immediately after the adjustment time, the entity had bought the interest back for the reduced or uplifted adjustable value.
Note: The notional sale and repurchase are separated in time. As a result, if this section is applied to another indirect value shift that happens later in the same income year, the interest's adjustable value will be based on the cost on the notional repurchase: see subsection (2).
 (4) However, an uplift in the *adjustable value of the interest is taken into account only to the extent that the amount of the uplift is still reflected in the market value of the interest when it is disposed of or otherwise realised.
 (5) If this Division provides for the *adjustable value of the interest to be both reduced and uplifted:
 (a) the reduction and uplift offset each other to the extent of whichever of them is the lesser, and subsection (3) of this section applies accordingly; but
 (b) to the extent that the amount of the uplift is no longer reflected in the market value of the interest, this section is taken always to have applied on the basis that the amount of the uplift was reduced to the same extent.

Subdivision 727‑K—Reduction of loss on equity or loan interests realised before the IVS time

Table of sections
727‑850 Consequences of scheme under this Subdivision
727‑855 Presumed indirect value shift
727‑860 Conditions about the prospective gaining entity
727‑865 How other provisions of this Division apply to support this Subdivision
727‑870 Effect of CGT roll‑over
727‑875 Application to CGT asset that is also trading stock or revenue asset

727‑850  Consequences of scheme under this Subdivision
 (1) If:
 (a) as at the time when a *scheme is entered into, or a later time, an entity (the prospective losing entity) has *provided, is providing, is to provide, or might provide, one or more economic benefits *in connection with the scheme; and
 (b) the prospective losing entity is a company or trust (except one listed in section 727‑125 (about superannuation entities)); and
 (c) a *realisation event happens to an *equity or loan interest, or to an *indirect equity or loan interest, in the prospective losing entity at a time when no *IVS