Draft Taxation Determination

TD 94/D111

Income tax: capital gains: how should interim and final liquidation distributions received by shareholders be treated for CGT purposes?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 95/12.

FOI status:

draft only - for comment


Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. An interim liquidation distribution is not 'consideration in respect of the disposal' of shares for the purposes of subsection 160ZD(1) of the Income Tax Assessment Act 1936. If the relevant shares were acquired after 19 September 1985, section 160ZL applies to the distribution, it being a payment in respect of the shares, to the extent that it is not deemed to be a dividend by subsection 47(1), or is a section 160ZLA rebatable dividend adjustment (subsection 160ZL(5)).

2. A final liquidation distribution is 'consideration in respect of the disposal' of shares for the purposes of subsection 160ZD(1).

3. When a final distribution is made, we expect that the liquidator would describe the distribution as such so that shareholders would be aware that it is a final distribution.

Commissioner of Taxation
8 December 1994


ATO references:
NO NAT 94/8635-6

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 94/D109
TD 94/D110

Subject References:
capital gains
companies, disposal of assets
final distribution
interim distribution

Legislative References:
ITAA 47(1)
ITAA 160ZD(1)
ITAA 160ZL(5)