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Edited version of your private ruling
Authorisation Number: 1012556368879
Ruling
Subject: Company B - Treasury Share Account
In order to protect the privacy and commercial in-confidence component of this private binding ruling the following summary is provided.
Question 1
Do journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the buy-back of Company B shares cause that account to be a share capital account for the purposes of section 975-300 of the Income Tax Assessment Act 1997 (ITAA 1997)?
The Commissioner has ruled that:
No. Journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the buy-back of Company B shares do not cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997.
Question 2
Do journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the purchase of Company B shares and their provision to shareholders under the Company B dividend reinvestment plan cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997?
The Commissioner has ruled that:
No. Journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the purchase of Company B shares and their provision to shareholders under the Company B dividend reinvestment plan do not cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997.
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