Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section sets out rules for:
(a) choosing to use the * adjustable value method to work out the consequences of an * indirect value shift; or
(b) choosing (when using the adjustable value method) not to work out on a * loss - focussed basis the reductions in the * adjustable values of * affected interests.
Who makes the choice
(2) The choice must be made in accordance with the table.
Who makes the choice | ||
Item | In this case: | The choice must be made by: |
1 | If the conditions in section 727 - 110 (common - ownership nexus test) are satisfied | jointly by the * ultimate owners because of whom the condition in the applicable item of the table in section 727 - 400 is satisfied |
2 | Item 1 does not apply, and there is an entity: (a) who is the sole * ultimate controller because of whom the conditions in section 727 - 105 (ultimate controller test) are satisfied; or (b) who would be that sole ultimate controller if sections 727 - 355 to 727 - 375 were applied ignoring that entity's * associates | that entity |
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.