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Edited version of private advice
Authorisation Number: 1051824703438
Date of advice: 13 May 2021
Ruling
Subject: Demerger
The Commissioner was asked three questions relating to demerger roll-over relief and deemed dividends.
The Commissioner has ruled on each of the questions as outlined:
Question 1
Will MidCo1 be entitled to choose demerger roll-over relief pursuant to section 125-55 of the Income Tax Assessment Act 1997 (ITAA 1997) as a result of the demerger?
Answer
No.
Question 2
Will the Commissioner make a determination under subsection 45B(2) of the Income Tax Assessment Act 1936 (ITAA 1936) that section 45B of the ITAA 1936 will apply to the in-specie distribution made by ForCo1 to ACo?
Answer
No.
Question 3
Does the in-specie distribution of shares in OzCo1 give rise to assessable income under subsection 44(1) of the ITAA 1936?
Answer
No.
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