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Edited version of your written advice
Authorisation Number: 1051321544639
Date of advice: 20 December 2017
Ruling
Subject: Capital Gains Tax Market Value Substitution and Multinational Anti-Avoidance Law (MAAL)
Question 1
Will section 116-30 of the Income Tax Assessment Act 1997 (“ITAA 1997”) apply to take the market value of the licences as the capital proceeds when each respective CGT Event C2 happens upon the termination of each respective licence?
Answer
Yes.
Question 2
Will the Commissioner apply section 177DA of the Income Tax Assessment Act 1936 (“ITAA 1936”) in relation to the termination of the licences or the contemplated supply arrangements of the entity?
Answer
No.
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