Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 12/20)
Character Range: 6657763–6660443

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 certain amounts for the purposes of sections 727‑230 and 727‑235

Anti‑overlap provisions
727‑250 Distribution by an entity to a member or beneficiary

Miscellaneous
727‑260 Shift down a wholly‑owned chain of entities

General

727‑215  Amount does not exceed $50,000
 (1) An *indirect value shift does not have consequences under this Division if the amount of it does not exceed $50,000.
 (2) However, subsection (1) does not apply to an *indirect value shift (and is taken never to have applied to it) if:
 (a) before, at the same time as, or after it, another indirect value shift happens for which the same entity is the losing entity as for the first indirect value shift; and
 (b) having regard to all relevant circumstances, it is reasonable to conclude that the sole or main reason why one of the indirect value shifts happened under a different *scheme from the other was so that its amount would 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
 (1) An *indirect value shift does not have consequences under this Division if the conditions in this section are met.
 (2) The *greater benefits must consist entirely of:
 (a) the *losing entity transferring a *CGT asset to the *gaining entity; or
 (b) a right to have the losing entity transfer an asset to the gaining entity.
 (3) There must be *lesser benefits and, as at the *IVS time, the total *market value of the lesser benefits must not be less than the greatest of these amounts:
 (a) the asset's *cost base at that time;
 (b) the asset's cost;
 (c) the asset's market value immediately before the most recent time (if any), since the *losing entity *acquired the asset, when an *affected owner has acquired:
 (i) a *primary equity interest in the losing entity; or
 (ii) an *indirect primary equity interest in the losing entity.
 (4) A *primary equity interest in an entity is an indirect primary equity interest in