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Edited version of your written advice
Authorisation Number: 1051309585503
Date of advice: 14 December 2017
Ruling
Subject: Income tax: CGT scrip for scrip rollover
Question
Will the requirements in section 124-780 be satisfied such that the Taxpayer will jointly be eligible with NewCo to choose capital gains tax roll-over relief under subdivision 124-M to disregard any capital gain arising to the Taxpayer upon the proposed transfer of shares in SubCo to NewCo?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2018
The scheme commences:
during the year ended 30 June 2018
Relevant facts and circumstances
The Australian head company of an income tax consolidated group (the Taxpayer) is transferring 100% ownership (all the shares) of one of its wholly owned subsidiary member companies (SubCo) to a newly incorporated company (NewCo) in exchange for shares in NewCo. The arrangement results in NewCo becoming the 100% owner of SubCo, and the Taxpayer becoming a part owner of NewCo.
The Commissioner issued a private ruling to the Taxpayer confirming the arrangement will qualify the Taxpayer for CGT rollover under subdivision 124-M.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 124-M
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