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Draft Taxation Determination

TD 93/D178

Income tax: capital gains: if a liquidator's written declaration was made before 11 November 1991, does the Commissioner have a discretion to accept the statement as valid under section 160WA?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/179.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Subsection 160WA(1) of the Income Tax Assessment Act 1936 deems a disposal and re-acquisition of shares for no consideration if a liquidator makes a written declaration on or after 11 November 1991. The declaration must state that the liquidator has reasonable grounds to believe that there is no likelihood that the shareholders (or shareholders of a particular class of shares) will receive any distribution in the course of winding up the company .

2. Statements made by a liquidator before 11 November 1991 would not be valid in terms of section 160WA. The Commissioner has no discretion to accept such statements as valid declarations in these circumstances.

3. The question of how shareholders may be notified of a liquidator's written declaration and in what format that declaration should be made has been dealt with in TD 92/101 and TD 92/102.

Commissioner of Taxation
15/7/93

References


BO ADVG BRIS CBD (CGTDET78)

ISSN 1038 - 8982

Related Rulings/Determinations:

TD92/101
TD92/102

Subject References:
Commissioner's discretion
liquidator's written declaration
winding up of a company

Legislative References:
ITAA 160WA
ITAA 160WA(1)


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