Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_10:p3
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 10 (pt 3/5)
Character Range: 276269–278907

repurchase becomes its adjustable value immediately before the decrease time or increase time for the later direct value shift.
Note 2: The adjustable value of an interest that is an up interest because it was issued at a discount is worked out under paragraph (b).

725‑320  Consequences for down interest or up interest as a revenue asset
 (1) The consequences of the *direct value shift for your *revenue assets are of one or more of these 3 kinds:
 (a) the *adjustable values of *down interests of which you are an *affected owner are reduced (see subsection (2));
 (b) the adjustable values of *up interests of which you are an affected owner are uplifted (see subsection (3));
 (c) one or more *taxing events generating a gain for down interests of which you are an affected owner (see subsection (5)).

Effect of reduction or uplift of adjustable value
 (2) If the *adjustable value of a *down interest that is your *revenue asset is decreased under section 725‑335, you are treated as if:
 (a) *immediately before the *decrease time, you had sold the interest to someone else for its *adjustable value immediately before the decrease time; and
 (b) immediately afterwards, you had bought the interest back for the reduced adjustable value; and
 (c) from the time when you bought it back, the interest continued to be a revenue asset, for the same reasons as it was a revenue asset before you sold it.
 (3) If the *adjustable value of an *up interest that is your *revenue asset is uplifted under section 725‑335, you are treated as if:
 (a) *immediately before the *increase time, you had sold the interest to someone else for its *adjustable value immediately before the increase time; and
 (b) immediately afterwards, you had bought the interest back for the uplifted adjustable value; and
 (c) from the time when you bought it back, the interest continued to be a revenue asset, for the same reasons as it was a revenue asset before you sold it.
 (4) However, the uplift in *adjustable value is taken into account only to the extent that the amount of the uplift is still reflected in the market value of the interest when it is disposed of or otherwise realised.

Taxing event generating a gain
 (5) For each *taxing event generating a gain under an item in the table in subsection 725‑335(3), the gain is included in your assessable income for the income year in which the *decrease time happens.

725‑325  Adjustable value of revenue asset
 (1) If a *down interest is your *revenue asset, its adjustable value immediately before the *decrease time is the total of the amounts that would be subtracted from the gross disposal