Div 725applies to a scheme entered into on or after 1 July 2002. It also applies to a scheme entered into on or after 27 June 2002, but only if:

Division 725 applies to a scheme entered into on or after 1 July 2002. It also applies to a scheme entered into on or after 27 June 2002, but only if: ### Division 727—Indirect value shifting affecting interests in companies and trusts, and arising from non‑arm’s length dealings 727‑470 Affected interests do not include equity or loan interests owned by entity that is eligible to be an STS taxpayer (1) Division 727, as inserted by the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 and amended by the New Business Tax System (Consolidation and Other Measures) Act 2003, applies to a scheme entered into on or after 1 July 2002. (b) a presumed indirect value shift that happens under the scheme and affects a realisation event that happens on or after 1 July 2002. (a) the economic benefits taken into account in determining that the scheme has resulted in that indirect value shift or presumed indirect value shift include economic benefits provided by: > Note: In that case, the consequences of the trigger event are worked out under Division 138 or 139 of the Income Tax Assessment Act 1997: see items 13 and 14 of Schedule 15 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002. (1) An indirect value shift does not have consequences under Division 727 of the Income Tax Assessment Act 1997 if, to the extent of at least 95% of their total market value, the greater benefits consist entirely of: (a) a right to have services that are covered by section 727‑240 of that Act provided directly by the losing entity to the gaining entity; or (d) if the losing entity’s 2002‑2003 income year ends before 30 June 2003—the start of the losing entity’s 2004‑2005 income year. (2) For the purposes of section 727‑850 (about a presumed indirect value shift affecting a realisation event) of the Income Tax Assessment Act 1997, subsection (1) of this section applies to the presumed indirect value shift: #### 727‑470 Affected interests do not include equity or loan interests owned by entity that is eligible to be an STS taxpayer (2) Paragraph 727‑470(2)(a) of the Income Tax Assessment Act 1997 (as in force immediately before the commencement of this section) continues to have effect in relation to the indirect value shift as if the repeals and amendments made by Schedule 1, Parts 1 and 2 of Schedule 3 and Schedule 8 to the Tax Laws Amendment (Small Business) Act 2007 had not been made. ## Division 50 Exempt entities ## 50‑1 Application of Division 50 of the I 50‑1 Application of Division 50 of the Income Tax Assessment Act 1997 Division 50 of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years. ## 50‑50 Charities established prior to 1 J 50‑50 Charities established prior to 1 July 1997 Disregard the use of the following amounts in determining (for the purposes of Subdivision 50‑A of the Income Tax Assessment Act 1997 whether a fund established before 1 July 1997 operates and pursues its purposes in Australia: ## Division 51 Exempt amounts ## 51‑1 Application of Division 51 of the I 51‑1 Application of Division 51 of the Income Tax Assessment Act 1997