Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An * indirect value shift does not have consequences under this Division if:
(a) there are * lesser benefits and, to the extent of at least 95% of their total * market value, the lesser benefits consist entirely of:
(i) a right to have services that are covered by section 727 - 240 provided directly by the gaining entity to the losing entity; or
(ii) services that are covered by section 727 - 240 and have been, are being, or are to be, so provided;
or both; and
(b) as at the * IVS time, the total market value of the greater benefits is not more than the total of:
(i) the present value of the direct cost to the gaining entity of providing the services; and
(ii) the present value of a reasonable allocation of the total direct cost to the gaining entity of providing services that include the first - mentioned services (so far as it is not already covered by subparagraph (i)); and
(iii) the present value of a reasonable allocation of the indirect cost to the gaining entity of providing the first - mentioned services; and
(iv) the mark - up worked out under subsection (2) or (3) of this section.
To work out the costs and present values referred to in paragraph
(1)(b),
see section 727 - 245.
(2) If it is reasonable to estimate that an entity providing the same quantity of services of the same kind in the same market would charge for them on the basis of a particular percentage mark - up, or on the basis of a percentage mark - up within a particular range, the mark - up for the purposes of subparagraph (1)(b)(iv) is:
• the total of the respective present values of the costs mentioned in subparagraphs (1)(b)(i), (ii) and (iii);
multiplied by:
• that percentage mark - up, or the highest percentage in that range.
(3) Otherwise, the mark - up for the purposes of subparagraph (1)(b)(iv) is 10% of the total of the respective present values of the costs mentioned in subparagraphs (1)(b)(i), (ii) and (iii).