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Edited version of your private ruling

Authorisation Number: 1012431372375

Ruling

Subject: Application of "value donor" concession in section 707-325 of the IT(TP)A 1997?

Question 1

Can ACo apply the "value donor" concession in section 707-325 of the IT(TP)A 1997?

Answer

Yes

Relevant facts and circumstances

1. ACo will be the head company of an income tax consolidated group.

2. ACo intends that the subsidiary members of the consolidated group will include:

3. ACo intends that, pursuant to section 707-325 of the IT(TP)A 1997, each member of the consolidated group, other than BCo, will be a value donor (as defined in subsection 707-325(1) of the IT(TP)A) 1997 in relation to BCo as the real loss-maker.

4. ACo intends that BCo will transfer its tax losses to ACo (as the head company).

Relevant legislative provisions

Income Tax (Transitional Provisions) Act 1997 Sections 707-325

Reasons for decision

As ACo meets all of the requirements contained under section 707-325 of the Income Tax (Transitional Provisions) Act 1997, A Co will be eligible for the "value donor" concession

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