Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p3
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 3/10)
Character Range: 360184–362824

There are consequences for the interest in its character as a *CGT asset. However, if the interest is also *trading stock or a *revenue asset, there are additional consequences for it in that character.
 (5) In working out the consequences for an *affected interest in the *losing entity or *gaining entity, in the interest's character as *trading stock, a *realisation event is disregarded for the purposes of identifying under paragraph (2)(c) or (3)(e) the first realisation event that happens to that interest at or after the *IVS time, if:
 (a) the realisation event consists of the ending of an income year; and
 (b) the *value of the interest as trading stock on hand of an entity at the end of the income year is the interest's *cost; and
 (c) the interest became part of the entity's trading stock on hand during that income year, or the value of the interest as trading stock of the entity on hand at the start of the income year was also the interest's cost.

727‑615  Reduction of loss on realisation event for affected interest in losing entity
  If this Subdivision applies to a *realisation event that happens to an *affected interest in the *losing entity, a loss that would, apart from this Division, be *realised for income tax purposes by the event is reduced by an amount that is reasonable having regard to:
 (a) a reasonable estimate of the amount (if any) by which the *indirect value shift has reduced the interest's market value; and
 (b) if the interest is also an affected interest in the *gaining entity—a reasonable estimate of the extent (if any) to which the interest's market value at the time of the realisation event still reflects the effect of the indirect value shift on the market value of *equity or loan interests in the gaining entity.

727‑620  Reduction of gain on realisation event for affected interest in gaining entity
  If this Subdivision applies to a *realisation event that happens to an *affected interest in the *gaining entity, a gain that would, apart from this Division, be *realised for income tax purposes by the event is reduced by an amount that is reasonable having regard to:
 (a) a reasonable estimate of the amount (if any) by which the *indirect value shift has increased the interest's market value; and
 (b) a reasonable estimate of the extent (if any) to which the interest's market value at the time of the realisation event still reflects the effect of the indirect value shift on the market value of *equity or loan interests in the gaining entity.

727‑625  Total gain reductions not to exceed total loss reductions
 (1) This section ensures that the total (total gain