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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your private ruling

Authorisation Number: 1012594880985

Ruling

Subject: Corporate Restructure - Arm's Length Dealing

Question 1

Does the Commissioner agree, that in respect of each transaction entered into by the taxpayer, that it dealt with each relevant counter party at arm's length in respect of each relevant dealing?

Answer

Yes.

Question 2

Does the Commissioner agree that the consideration received by the taxpayer in return for the sale of certain assets to Entity B for the purposes of Division 230 of the ITAA 1997 is $X and the sale of certain other assets to Entity B for the purposes of Division 116 of the ITAA 1997 is $X being:

    a) equivalent to $X, being the negotiated price between the taxpayer and Entity B and

    b) in turn equivalent to the face value of the Promissory Notes provided as consideration by Entity B?

Answer

Yes.

Question 3

Does the Commissioner agree that the consideration received by the taxpayer for the purposes of Division 116 of the ITAA 1997 in return for the sale of all of the Entity C securities held by the taxpayer, is:

    a) equivalent to $X, being the negotiated price between the taxpayer and Entity D; and

    b) in turn equivalent to the face value of the Promissory Note provided as consideration by Entity D?

Answer

Yes.

This ruling applies for the following periods:

The income year ended 30 June 20XX

The scheme commences on:

During the year ended 30 June 20XX

Relevant facts and circumstances

The taxpayer has applied for a private ruling in relation to matters concerning a corporate restructure

Relevant legislative provisions

Income Tax Assessment Act 1997

Section 103-10;

Section 104-10;

Section 108-5;

Section 110-25;

Section 116-20;

Section 116-30;

Section 116-40;

Section 230-20;

Section 230-45;

Section 230-100;

Section 230-105;

Section 230-115;

Section 230-445; and

Section 230-510.


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