Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_11:p11
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 11 (pt 11/20)
Character Range: 311492–314203

of those entities or a third entity; or
 (ii) 2 or more such things.
 (2) An entity referred to in paragraph (1)(b) need not be a party to the *scheme. A benefit can be provided by act or omission.

727‑165  Preventing double‑counting of economic benefits

Rights to have economic benefits provided
 (1) If an economic benefit that has been, is being, is to be, or might be, *provided as mentioned in subsection 727‑150(3) or 727‑855(1) consists of a right to have economic benefits provided, that subsection applies to the right but does not also apply to those economic benefits.
Example: Acme Ltd enters into an agreement with Paragon Pty Ltd under which Acme is to provide services to Paragon over a 5 year period in return for payments.
 Paragon's rights under the agreement are economic benefits that Acme provides to Paragon when the agreement is made. The services are economic benefits that Acme is to provide to Paragon.
 Because of this subsection, the market value of the rights is taken into account in working out whether there has been an indirect value shift, but the market value of the services is not.

Effect of an economic benefit on interests in the entity to which it is provided
 (2) If an economic benefit has been, is being, or is to be, *provided to an entity, then, for the purposes of subsection 727‑150(3) or 727‑855(1), disregard an economic benefit to the extent that:
 (a) it consists of an increase in the market value of:
 (i) an *equity or loan interest in the entity; or
 (ii) an *indirect equity or loan interest in the entity; and
 (b) the increase is reasonably attributable to the first‑mentioned benefit.

Subdivision 727‑C—Exclusions

Guide to Subdivision 727‑C

727‑200  What this Subdivision is about
      Some indirect value shifts do not have consequences under this Division.
Note 1: If the consequences of an indirect value shift are to be worked out using the realisation time method (under Subdivision 727‑G), there are further exclusions for certain 95% services indirect value shifts: see section 727‑700.
Note 2: For cases where there may be both a direct value shift and an indirect value shift, see Subdivision 727‑L.

Table of sections

General
727‑215 Amount does not exceed $50,000
727‑220 Disposal of asset at cost, or at undervalue if full value is not reflected in adjustable values of equity or loan interests in the losing entity

Indirect value shifts involving services
727‑230 Services provided by losing entity to gaining entity for at least their direct cost
727‑235 Services provided by gaining entity to losing entity for no more than a commercially realistic price
727‑240 What services certain provisions apply to
727‑245 How to work out