Subdivision 768-G of ITAA 1997, example

For the past two years, an Australian company has owned 100% of an overseas company that manufactures and sells shoes. All the assets of the overseas company are active business assets. The Australian company has now sold 40% of the shares in the overseas company and has made a capital gain. The capital gain is reduced to nil.

    Last modified: 21 Feb 2012QC 25356