| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1051298507559
Disclaimer
You cannot rely on this edited version in your tax affairs. You can only rely on the advice that we have given to you or to someone acting on your behalf.
The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.
Date of advice: 25 October 2017
Ruling
Subject: Proposed on-market share buy-back
Question 1
Will the proposed on-market share buy-back of ordinary shares in Entity A by Entity A (Proposed Buy-back) be an ‘on-market buy-back’ for the purposes of Division 16K of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes.
Question 2
Will any part of the consideration paid by Entity A to buy back its ordinary shares (Buy-back Price) be regarded as a dividend under subsection 6(1) of the ITAA 1936?
Answer
No.
Question 3
Will a franking debit be included in Entity A’s franking account under item 9 of the table in subsection 205-30(1) of the Income Tax Assessment Act 1997 (ITAA 1997) as a result of the Proposed Buy-back?
Answer
No.
Question 4
Will Entity A’s share capital accounts be tainted under Division 197 of the ITAA 1997 as a result of the Proposed Buy-back?
Answer
No.
Question 5
Will the Commissioner make a determination under subsection 45C(3) of the ITAA 1936 in relation to the Proposed Buy-back?
Answer
No.
Relevant facts and circumstances
Entity A applied for a private binding ruling in respect to a proposed on-market share buy-back.
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).
