Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p7
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 7/10)
Character Range: 369876–372495

the roll‑over, for the entity that *acquired the interest because of the CGT event; and
 (e) in the case of a *replacement‑asset roll‑over—the reduced cost base of the replacement CGT asset, from time to time after the roll‑over, for the entity that *disposed of the interest.
Note: Because of the roll‑over, the loss reduction under section 727‑615 will have no tax effect. This subsection ensures that the loss reduction is passed on, through the reduction in reduced cost base, to prevent or reduce a loss arising on a later CGT event.
 (2) If:
 (a) this Subdivision applies to a *realisation event that is a *CGT event that happens to an *affected interest in the *gaining entity; and
 (b) section 727‑620 reduces a gain that would, apart from this Division, be *realised for income tax purposes by the CGT event; and
 (c) there is a roll‑over for the CGT event;
the interest's *cost base at the time of the CGT event is taken to have been uplifted by the amount by which section 727‑620 reduces that gain, but is so taken only for the purposes of working out:
 (d) the interest's cost base, from time to time after the roll‑over, for the entity that *acquired the interest because of the CGT event; and
 (e) in the case of a *replacement‑asset roll‑over—the cost base of the replacement CGT asset, from time to time after the roll‑over, for the entity that *disposed of the interest.
Note: Because of the roll‑over, the gain reduction under section 727‑620 will have no tax effect. This subsection ensures that the gain reduction is passed on, through the uplift in cost base, to prevent or reduce a gain arising on a later CGT event.
[The next section is section 727‑700.]

Further exclusion for certain 95% services indirect value shifts if realisation time method must be used

727‑700  When 95% services indirect value shift is excluded
 (1) If the *indirect value shift is a *95% services indirect value shift, this Subdivision does not apply to a *realisation event that:
 (a) happens to an *affected interest in the *losing entity that is owned by an entity (the owner); and
 (b) is covered by subsection 727‑610(2);
unless:
 (c) the conditions in section 727‑705 are met for the indirect value shift; or
 (d) the conditions in section 727‑710, 727‑715 or 727‑720 are met for the indirect value shift and for that realisation event.
 (2) An *indirect value shift is a 95% services indirect value shift if, and only if, to the extent of at least 95% of their total market value, the *greater benefits consist entirely of:
 (a) a right to have services that are covered by section 727‑240 provided directly by