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Edited version of private advice
Authorisation Number: 1052327645249
Date of advice: 12 November 2024
Ruling
Subject: Disposal of shares - subdivision 126-B roll-over
Question
Will Company A be eligible to choose to obtain a roll-over under Subdivision 126-B of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the disposal of the shares it held in Company B to Company C?
Answer
Yes.
This ruling applies for the following period:
1 December 2024 to 30 November 2025
The scheme commenced on:
In the income year ending 30 November 2025
Relevant facts and circumstances
Company A and Company C are both companies incorporated in a foreign country.
Company A is wholly owned by Company C.
Company A is the sole shareholder of Company B (a company incorporated in Australia). More than 50% of the market values of Company B's assets consist of land in Australia.
Company A proposes to dispose all of its shares in Company B to Company C.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 126-B
Reasons for decision
The proposed disposal will satisfy the requirements of sections 126-45 and 126-50 of the ITAA 1997.
Therefore, Company A will be eligible to choose to obtain a roll-over under Subdivision 126-B of the ITAA 1997in respect of the disposal of its shares in Company B to Company C.
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