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Ruling
Subject: Restructure and liquidation of the Head Co tax consolidated group
The Commissioner was asked to rule on whether Individual D (as director of the trustee company) will be assessed and liable to any family trust distribution tax under Division 271 of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936) in respect of the distribution of the dividend and the liquidator's dividend to Companies A, B, C or D.
The Commissioner ruled that as paragraph 271-15(1)(b) of Schedule 2F to the ITAA 1936 does not apply, the distribution by the trustee of the trust of an amount equal to the share of the dividend and liquidator's dividend will not make Individual D, the director of the trustee company, liable to pay family trust distribution tax under Division 271 of Schedule 2F to the ITAA 1936.