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  • Off-market share buy backs



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If you disposed of shares to a company under a buy-back arrangement, you may have made a capital gain or capital loss. A part of the buy-back price may be treated as a dividend for tax purposes. The time you make the capital gain or capital loss will depend on the particular buy-back offer.

    If the information provided by the company or any class ruling that has been issued in relation to the buy-back is not sufficient for you to calculate your capital gain or capital loss, you may need to seek advice from us or a recognised tax adviser.

    For more information about off-market share buy-backs, see:

    • Taxation Determination TD 2004/22 Income tax: for off-market share buy-backs of listed shares, whether the buy-back price is set by tender process or not, what is the market value of the share for the purposes of subsection 159GZZZQ(2) of the Income Tax Assessment Act 1936?
    • any class ruling that has been issued in relation to the buy-back.
    Last modified: 27 May 2021QC 64914