Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p1
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 1/13)
Character Range: 388729–391545

3                                                 is less than the old adjustable value                 is less than the old adjustable value                 the *adjustable value is reduced by the amount of the *disaggregated attributable decrease

Note 1: Because of item 1, the indirect value shift cannot cause a loss to arise on disposal of the interest.
Note 2: Because of item 3 the loss already embedded in the interest is preserved, but the indirect value shift does not increase it.
[The next section is section 727‑800.]

Uplifts of adjustable value

727‑800  Uplift under the attributable increase method
 (1) This section sets out how to work out the amount (if any) by which the *adjustable value of an *affected interest in the *gaining entity is uplifted.
 (2) First, work out under section 727‑805 whether the *indirect value shift has produced for the owner of the interest a *disaggregated attributable increase in the market value of the interest.
 (3) If it has not, the interest's *adjustable value is not uplifted because of the *indirect value shift.
 (4) If it has, the *adjustable value is uplifted by the amount worked out using the scaling‑down formula in section 727‑810, subject to the rest of this section.
Note: The uplift will be less than or equal to the disaggregated attributable increase.

Cap if interest has both a disaggregated attributable increase and a disaggregated attributable decrease
 (5) If the *indirect value shift has also produced for the owner of the interest a *disaggregated attributable decrease in the market value of the interest, the interest's *adjustable value:
 (a) is not uplifted if it is not also reduced under this Division because of the indirect value shift; and
 (b) if it is also reduced under this Division because of the indirect value shift—is not uplifted by more than the reduction.

Cap based on notional distribution by gaining entity of dividends or capital equal to total reductions in adjustable value of affected interests in losing entity
 (6) However, the interest's *adjustable value is not uplifted by more than the greater of these amounts:
 (a) the amount (if any) that the *affected owner of the interest would receive (directly, or indirectly through one or more interposed entities) in respect of the interest if:
 (i) the *gaining entity were to pay as *dividends, at the time (the payment time) immediately before the *IVS time, an amount (the total reduction amount) equal to the total of the amounts by which the *adjustable values of *equity or loan interests in the *losing entity are reduced under this Subdivision because of the *indirect value shift; and
 (ii) those dividends were successively paid or distributed at the payment time by each entity interposed between the gaining entity and that affected owner; and