The general value shifting regime (GVSR) replaced the previous value shifting rules contained in Divisions 138, 139, and 140 of the Income Tax Assessment Act 1997  (ITAA 1997), generally with effect from 1 July 2002.

The regime addresses arrangements that shift value out of assets, distorting the relationship between their market values and their values for tax purposes. Without a value shifting regime, these arrangements could encourage the creation of artificial losses and the deferring of gains.

Please follow the link The Guide to the general value shifting regime which explains the key features of the regime (including the exclusions and safe harbours) and the circumstances where it is relevant.

Please contact our office if you wish to discuss any of the above material.