| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012410509498
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Capital Reduction
Question 1
Will the share capital account become tainted under Division 197 of the Income Tax Assessment Act 1997 as a result of a proposed capital reduction?
Answer
No
This ruling applies for the following periods:
1 July 2012 - 30 June 2013
The scheme commences on:
N/A
Relevant facts and circumstances
Aus Ltd, an Australian tax resident company undertakes transfer of amounts between two share capital accounts.
Relevant legislative provisions
Income Tax Assessment Act 1997 - Division 197
Reasons for decision
Applying subsection 975-300(2) of the ITAA 1997, both the share capital accounts are taken to be a single account. As both accounts are treated as a single share capital account, subsection 197-5(1) of the ITAA 1997 does not apply as there is no amount being transferred to a company's share capital account from another of the company's account.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
