Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p11
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 11/13)
Character Range: 413543–416188

(a) the *realisation event mentioned in paragraph 727‑850(1)(c) is a *CGT event; and
 (b) section 727‑850 reduces a loss that would, apart from this Division, be *realised for income tax purposes by the CGT event; and
 (c) there is a roll‑over for the CGT event;
the interest's *reduced cost base at the time of the CGT event is taken to have been reduced by the amount by which section 727‑850 reduces that loss, but is so taken only for the purposes of working out:
 (d) the interest's reduced cost base, from time to time after the roll‑over, for the entity that *acquired the interest because of the CGT event; and
 (e) in the case of a *replacement‑asset roll‑over—the reduced cost base of the replacement CGT asset, from time to time after the roll‑over, for the entity that *disposed of the interest.
Note: Because of the roll‑over, the loss reduction under section 727‑850 will have no tax effect. This subsection ensures that the loss reduction is passed on, through the reduction in reduced cost base, to prevent or reduce a loss arising on a later CGT event.

727‑875  Application to CGT asset that is also trading stock or revenue asset
  If an *equity or loan interest is also an item of *trading stock or a *revenue asset, this Subdivision applies to the interest once in its character as a CGT asset and again in its character as trading stock or a revenue asset.

Subdivision 727‑L—Indirect value shift resulting from a direct value shift

Table of sections
727‑905 How this Subdivision affects the rest of this Division
727‑910 Treatment of value shifted under the direct value shift

727‑905  How this Subdivision affects the rest of this Division
 (1) This Subdivision affects how the rest of this Division applies to a *scheme (the IVS scheme) that is or includes a scheme (the DVS scheme) under which there is a *direct value shift.
 (2) If the *direct value shift:
 (a) has consequences under Division 725 for an entity as an *affected owner of *down interests (or would do so apart from section 725‑90 (about direct value shifts that will be reversed)); and
 (b) also has consequences under that Division for another entity as an affected owner of *up interests (or would do so apart from section 725‑90);
the rest of this Subdivision has effect, for the purposes of Subdivisions 727‑A to 727‑K, in order to determine:
 (c) whether the IVS scheme results in an *indirect value shift, from the first entity to the other entity, that has consequences under this Division; and
 (d) whether the IVS scheme has consequences under Subdivision 727‑K because it results in a *presumed indirect value shift affecting a *realisation