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Edited version of private advice
Authorisation Number: 1051739336263
Date of advice: 14 August 2020
Ruling
Subject: Capital gains tax
Question 1
Is an amount required to be included in Company M's assessable income on the basis that a capital gains tax (CGT) event happened on the making of the Court Orders or when Company M transferred bare legal title to the 'Company M Transferred Shares' to Company A in accordance with the Court Orders?
Answer
No.
Question 2
Did the transfer of Company M's bare legal title to the 'Company M Transferred Shares' cause any amount to be included in Company M's assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997), on the basis that an amount of ordinary income was derived by Company M when Company M transferred its bare legal title to those shares to Company A in accordance with the Court Orders?
Answer
No.
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