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Edited version of your private ruling
Authorisation Number: 1012589257629
Ruling
Subject: Proposed Return of Capital
Question 1
Will the Commissioner confirm that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes
Question 2
Will the Commissioner confirm that he will not make a determination under sections 45A and 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital?
Answer
Yes
This ruling applies for the following period:
1 January 2014 to 31 December 2014
The scheme commences on:
1 January 2014
Questions at issue
In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.
The taxpayer requested a ruling based on the following questions:
1. Will the Commissioner confirm that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the ITAA 1936?
2. Will the Commissioner confirm that he will not make a determination under sections 45A and 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital?
The Commissioner has ruled that:
1. Yes, the Commissioner confirms that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the ITAA 1936.
2. Yes, the Commissioner confirms that he will not make a determination under sections 45A and 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 6(1),
Income Tax Assessment Act 1936 Section 45A,
Income Tax Assessment Act 1936 Section 45B,
Income Tax Assessment Act 1936 Section 45C,
Income Tax Assessment Act 1936 Subsection 177D(b),
Income Tax Assessment Act 1936 Section 45C,
Income Tax Assessment Act 1997 Section 995-1,
Income Tax Assessment Act 1997 Section 975-300 and
Income Tax Assessment Act 1997 Section 197-50.