Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_1:p9
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 1 (pt 9/18)
Character Range: 238964–241509

value shifting purposes),
see sections 727‑355 to 727‑375.
[The next section is section 725‑65.]

725‑65  Cause of the value shift
 (1) It must be the case that one or more of the following:
 (a) the target entity;
 (b) the controller;
 (c) an entity that was an *associate of the controller at some time during or after the *scheme period;
 (d) an *active participant in the *scheme;
(either alone or together with one or more other entities) did under the scheme the one or more things:
 (e) to which the decrease in the market value of the *down interests is reasonably attributable; and
 (f) to which the increase in the market value of the *up interests, or the issue of up interests at a *discount, is reasonably attributable, or that is or include the issue of up interests at a *discount.

Active participants (if target entity is closely held)
 (2) An entity (the first entity) is an active participant in the *scheme if, and only if:
 (a) at some time during the *scheme period, the target entity has fewer than 300 members (in the case of a company) or fewer than 300 beneficiaries (in the case of a trust); and
 (b) the first entity has actively participated in, or directly facilitated, the entering into or carrying out of the *scheme (whether or not it did so at the direction of some other entity); and
 (c) the first entity:
 (i) owns a *down interest at the *decrease time; or
 (ii) owns an *up interest at the *increase time or has an up interest issued to it at a *discount because of the *direct value shift.

When an entity has 300 or more members or beneficiaries
 (3) Section 124‑810 (under which certain companies and trusts are not regarded as having 300 or more members or beneficiaries) also applies for the purposes of this Division.
 (4) In addition, this Division applies to a *non‑fixed trust as if it did not have 300 or more beneficiaries.

725‑70  Consequences for down interest only if there is a material decrease in its market value
 (1) For a *down interest of which you are an *affected owner, the *direct value shift has consequences under this Division only if the sum of the decreases in the market value of all down interests because of direct value shifts under the same *scheme as the direct value shift is at least $150,000.
Note: In working out the sum of the decreases in market value of all down interests, it will be necessary to include decreases not only in your down interests, but also in those of other affected owners and of entities that are not affected owners.
 (2) However, if, having