Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_1:p13
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 1 (pt 13/18)
Character Range: 248210–250803

section applies to the interest as if the amount of the payment that the issuing entity receives were equal to the *cost base of the interest when issued (as worked out under section 130‑20).
 (4) If:
 (a) a *primary equity interest is issued as mentioned in subsection 6BA(1) of the Income Tax Assessment Act 1936 (about bonus shares issued in relation to original shares); and
 (b) subsection 6BA(2) of that Act applies (about bonus shares that are a dividend);
subsection (1) of this section applies to the interest as if the amount of the payment that the issuing entity receives were equal to the consideration worked out under subsection 6BA(2) of that Act.
 (5) If both of subsections (3) and (4) apply to the issue of the same *primary equity interest, subsection (1) of this section applies to the interest as if the amount of the payment that the issuing entity receives were equal to the greater of the amounts worked out under subsections (3) and (4).

Application of subsections (3), (4) and (5)
 (6) Subsection (3) does not apply if, for the income year in which the interest is issued, the issuing entity is:
 (a) a corporate unit trust within the meaning of section 102J of the Income Tax Assessment Act 1936; or
 (b) a public trading trust within the meaning of section 102R of that Act.
 (7) Subsections (3), (4) and (5) have effect only for the purposes of working out whether a *direct value shift has happened and, if so, its consequences (if any) under this Division.

725‑155  Meaning of down interests, decrease time, up interests and increase time
 (1) An *equity or loan interest in the target entity is a down interest if a decrease in its market value is reasonably attributable to the one or more things referred to in paragraph 725‑145(1)(b), and occurs at or after the time referred to in that paragraph. The time when the decrease happens is called the decrease time for that interest.
 (2) An *equity or loan interest in the target entity is an up interest if subsection 725‑145(2) or (3) is satisfied for the interest. The time when the interest is issued at a *discount, or the increase in market value happens, is called the increase time for that interest.

725‑160  What is the nature of a direct value shift?
 (1) The *direct value shift has 2 aspects.
 (2) Overall, it consists of:
 (a) the decreases in market value of the down interests; and
 (b) the issue at a *discount of the up interests covered by subsection 725‑145(2); and
 (c) the increases in market value of the up interests covered by subsection 725‑145(3).
 (3) This Division also proceeds