Section 727Income Tax Assessment Act 1997 (Cth)

‑1  What this Division is about

If there is a net shift of value between 2 related entities because of a non‑arm’s length dealing, this Division:

(a) prevents losses from arising, because of the value shift, on realisation of direct or indirect equity or loan interests in the losing entity; and

(b) within limits, prevents gains from arising, because of the value shift, on realisation of direct or indirect equity or loan interests in the gaining entity.

However, it does so only for interests that are owned by entities involved in the value shift.

Table of sections

727‑5 What is an indirect value shift?

727‑10 How does this Division deal with indirect value shifts?

727‑15 When does an indirect value shift have consequences under this Division?

727‑25 Effect of this Division on realisations at a loss that occur before the nature or extent of an indirect value shift can be fully determined

Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

Related sections

Research how courts apply s 727

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.

Try BriefBridge free