Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_11:p15
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 11 (pt 15/20)
Character Range: 321339–323922

consist of or include leasing, renting, hiring, or allowing the use of, any asset:
 (i) the cost of acquiring the asset; or
 (ii) the cost of acquiring an interest in, or right in respect of, the asset in order to provide the services.
Example: Acme Ltd is the holding company of Group Financier Pty Ltd. Group Financier Pty Ltd borrows $20 million at 7% per annum, and on lends it to other subsidiaries of Acme Ltd at 8% per annum.
 The $20 million does not form part of Group Financier Pty Ltd's direct cost of the services it provides to the other subsidiaries in the form of the on lending. However, the 7% interest that Group Financier Pty Ltd pays on the $20 million does form part of that direct cost.
 (3) The present values mentioned in paragraph 727‑230(b) or 727‑235(1)(b) are to be worked out using a discount rate equal to the rate that, for the purposes of section 109N of Income Tax Assessment Act 1936, is the benchmark interest rate for the income year in which the *IVS time occurs.
Note: That section is about distributions to entities connected with a private company.

Anti‑overlap provisions

727‑250  Distribution by an entity to a member or beneficiary
 (1) An *indirect value shift does not have consequences under this Division if:
 (a) the *greater benefits consist entirely of:
 (i) a distribution of income or capital that the *losing entity makes to the *gaining entity; or
 (ii) a right to a distribution of income or capital that the losing entity is to make to the gaining entity;
  because the gaining entity holds *primary equity interests in the losing entity; and
 (b) either:
 (i) an amount covered by one or more of subsections (2), (3) and (4); or
 (ii) the total of 2 or more such amounts;
  equals or exceeds the amount of the distribution.

Conditions
 (2) This subsection covers an amount that the assessable income or exempt income of the gaining entity for any income year includes because of the distribution or right.
 (3) This subsection covers an amount by which the *cost base or *reduced cost base (or both) of some or all of the *primary equity interests referred to in subsection (1) changes because of the distribution or right.
 (4) This subsection covers an amount that, because of the distribution or right, is taken into account:
 (a) under section 116‑20 in working out the *capital proceeds of a *CGT event that happens during any income year to some or all of the *primary equity interests referred to in subsection (1); or
 (b) in working out a *capital gain that an entity makes from CGT event E4 or G1 happening during