Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/10)
Character Range: 6698994–6701892

3                     Neither of items 1 and 2 applies                                                                                                         jointly by the 2 or more *ultimate controllers because of whom the conditions in section 727‑105 (ultimate controller test) are satisfied

When choice must be made
 (3) The choice must be made within 2 years after the first *realisation event that happens to an *affected interest at or after the IVS time.

Choice binds all affected owners
 (4) The choice binds all *affected owners for the *indirect value shift.

727‑555  Giving other affected owners information about the choice
 (1) An entity that makes a choice under section 727‑550 (including a choice made jointly with one or more other entities) must inform all entities that it knows to be *affected owners for the *indirect value shift about the content of the choice. The entity must do so in writing within one month after making the choice.
Penalty: 30 penalty units.
 (2) If:
 (a) a choice under section 727‑550 is made jointly by 2 or more entities; and
 (b) one of the entities complies with subsection (1);
no other entity need comply with that subsection in relation to that choice.
 (3) If an *affected owner for an *indirect value shift has reason to believe that an entity may have made a choice under section 727‑550 (including a choice made jointly with one or more other entities), the affected owner may give the entity a written notice asking whether the entity has made such a choice.
 (4) Within one month after receiving a notice under subsection (3), an entity must inform the *affected owner in writing whether the entity has made a choice under section 727‑550 and, if so, about the content of the choice.
Penalty: 30 penalty units.
 (5) The Commissioner may extend the period for complying with a provision of this section.

Subdivision 727‑G—The realisation time method

727‑600  What this Subdivision is about

      Under the realisation time method:
         • losses on realisation of affected interests in the losing entity are reduced; and
         • gains on realisation of affected interests in the gaining entity are reduced, within limits worked out by reference to the reductions in losses on affected interests in the losing entity; and
         • certain 95% services indirect value shifts are disregarded.
      This Subdivision also explains how its reduction of a loss or gain affects CGT assets, trading stock and revenue assets.

Table of sections

Operative provisions
727‑610 Consequences of indirect value shift
727‑615 Reduction of loss on realisation event for affected interest in losing entity
727‑620 Reduction of gain on realisation event for affected interest in gaining entity
727‑625 Total gain reductions not to exceed total loss reductions
727‑630 How cap in section 727‑625 applies if affected interest is also trading