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Edited version of your private ruling
Authorisation Number: 1012547625301
Ruling
Subject: Corporate restructure
Question 1
Will amending the constitution of the trust cause a CGT event in Division 104 of the ITAA 1997 to happen?
Answer
No.
Question 2
Do the ordinary shares held by the trust constitute 'traditional securities' of the trust (as defined in subsection 26BB(1) of the ITAA 1936)?
Answer
No.
Question 3
Will the ordinary shares and the RPS held by the trust be treated as separate CGT assets under section 108-5 of the ITAA 1997?
Answer
Yes.
Question 4
To the extent a gain or loss is made by the trust in relation to the disposal of the ordinary shares held by the trust, will such a gain or loss be subject to the CGT provisions in Part 3-1 of the ITAA 1997, and not section 6-5, section 8-1 or Division 230 of the ITAA 1997?
Answer
Yes.
Question 5
Will CGT event A1 happen under section 104-10 of the ITAA 1997 when the trust disposes of its ordinary shares?
Answer
Yes.
Question 6
Will the time of CGT event A1 be the date on which the trust enters into the contract for the disposal of its ordinary shares pursuant to paragraph 104-10(3)(a) of the ITAA 1997?
Answer
Yes.
Question 7
To the extent the trust makes a capital gain from CGT event A1 in respect of the ordinary shares held by the trust, will the trust be entitled to a discount percentage of 50% in respect of the capital gain pursuant to subparagraph 115-100(a)(ii) of the ITAA 1997?
Answer
Yes.
Question 8
Do the RPS held by the trust constitute 'traditional securities' of the trust (as defined in subsection 26BB(1) of the ITAA 1936)?
Answer
No.
Question 9
To the extent a gain or loss is made by the trust in relation to the disposal of the RPS held by the trust, will such a gain or loss be subject to the application of the CGT provisions in Part 3-1 of the ITAA 1997, and not section 6-5, section 8-1 or Division 230 of the ITAA 1997, or section 26BB or section 70B of the ITAA 1936?
Answer
Yes.
Question 10
Will CGT event A1 happen under section 104-10 of the ITAA 1997 when the trust disposes of its RPS?
Answer
Yes.
Question 11
Will the time of CGT event A1 be the date on which the trust enters into the contract for the disposal of its RPS pursuant to paragraph 104-10(3)(a) of the ITAA 1997?
Answer
Yes.
Question 12
To the extent the trust makes a capital gain from CGT event A1 in respect of the RPS held by the trust, will the trust be entitled to a discount percentage of 50% in respect of the capital gain pursuant to subparagraph 115-100(a)(ii) of the ITAA 1997?
Answer
Yes.
Question 13
Under section 116-20, will the capital proceeds for the disposal of the ordinary shares and RPS by the trust be calculated by apportioning the capital proceeds between the ordinary shares and RPS by reference to their market value?
Answer
Yes.
Question 14
Will the loan from the trust to the company be a financial arrangement of the trust to which Division 230 of the ITAA 1997 will apply?
Answer
Yes.
Question 15
If the answer to Question 14 is yes, will interest income derived by the trust in respect of its loan to the company be assessable to the trust on an accruals basis in accordance with the accruals method under Subdivision 230-B of the ITAA 1997?
Answer
Yes.
Question 16
If the answer to Question 14 is yes, will subsection 230-20(4) of the ITAA 1997 apply to prevent any gain or loss made by the trust in relation to its loan to the company from being included in its assessable income (or allowed as an allowable deduction) under other provisions outside of Division 230 of the ITAA 1997 for the same or any other income year?
Answer
Yes.
Question 17
Will the transfer of units to the trust result in the trust being a 'public trading trust' under subsection 102R(1) of the ITAA 1936 for the year ending 31 December 20XX?
Answer
No.
Question 18
Does the Commissioner agree that there is no reasonable basis to issue a determination to the trust, pursuant to the provisions in Part IVA of the ITAA 1936, in connection with a scheme comprising of all or some of the steps in the restructure?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 20xx
The scheme commences on:
During the year ended 30 June 20xx
Relevant facts and circumstances
The taxpayer has applied for a private ruling in relation to matters concerning a corporate restructure.
Relevant legislative provisions
Income Tax Assessment Act 1997
Section 103-10
Section 104-10
Section 108-5
Section 110-25
Section 115-5
Section 115-10
Section 115-15
Section 115-20
Section 115-25
Section 115-45
Section 115-100
Section 116-20
Section 116-30
Section 116-40
Section 230-20
Section 230-45
Section 230-100
Section 230-105
Section 230-115
Section 230-310
Section 230-445
Section 230-510
Section 995-1
Income Tax Assessment Act 1936
Section 26BB
Section 70B
Division 6C
Section 102N
Section 102R
Section 159GP
Other legislation:
Section 257-75(1) of Schedule 1 of the Tax Administration Act 1953
Section 254K of the Corporations Act 2001 (Cth) (Corporations Act)
Section 254T of the Corporations Act
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