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Edited version of your private ruling
Authorisation Number: 1012550529652
Ruling
Subject: Corporate restructure
Question 1
Under subsection 110-25(2) of the ITAA 1997, does the first element of the cost base of the units acquired by the trust equal the sum of the cash paid by the trust and the market value of the securities issued?
Answer
Yes.
Question 2
Did the entity become a 'subsidiary member' of the income tax consolidated group under item 2 of the table in section 703-15 of the ITAA 1997 on xx xx 20xx (which was the date on which the unit register was updated for the transfer of the units to the trust) by virtue of the application of section 703-30 of the ITAA 1997?
Answer
Yes.
Question 3
As a result of the entity joining the income tax consolidated group, will the trust be required to reset the tax cost base of the assets held by the entity pursuant to the tax cost setting process in Subdivision 705-A of the ITAA 1997?
Answer
Yes.
Question 4
For the purposes of the tax cost setting process in Subdivision 705-A of the ITAA 1997, will the ordinary shares and RPS held by the entity be treated as separate assets?
Answer
Yes.
Question 5
Pursuant to subsection 703-70(1) of the ITAA 1997, will the income tax consolidated group be taken not to have ceased to exist as the company must choose under subsection 124-380(5) of the ITAA 1997 for the income tax consolidated group to continue to exist with the company as the new head company?
Answer
Yes.
Question 6
Does the Commissioner agree that the company will inherit the trust's identity and tax history for the part of the income year that ends before the completion time (including benefiting from this ruling made by the Commissioner)?
Answer
Yes.
Question 7
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 108-5
Section 110-25
Section 112-30
Section 124-365
Section 124-380
Section 165-12
Section 165-15
Section 230-20
Section 230-45
Section 230-100
Section 230-105
Section 230-115
Section 701-1
Section 701-10
Section 701-30
Section 701-60
Section 703-5
Section 703-15
Section 703-20
Section 703-25
Section 703-30
Section 703-33
Section 703-70
Section 703-75
Section 703-80
Section 705-35
Section 705-175
Section 707-120
Section 707-140
Section 707-210
Section 707-320
Section 960-130
Section 960-135
Section 974-5
Section 974-20
Section 974-35
Section 974-75
Section 974-80
Section 974-130
Section 974-135
Section 974-160
Subsection 995-1(1)
Income Tax Assessment Act 1936
Division 6 of Part III
Division 6C of Part III
Section 102P
Part IVA
Section 318
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