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Edited version of private advice
Authorisation Number: 1012637381629
Ruling
Subject: Return of capital
Question 1
Will any part of the Return of Capital constitute a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
No
Question 2
Will the Commissioner make a determination under section 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital?
Answer
No
This ruling applies for the following period:
1 July 2013 to 30 June 2014
The scheme commences prior to 30 June 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 any part of the Return of Capital constitute a dividend as defined in subsection 6(1) of the ITAA 1936?
2. Will the Commissioner make a determination under section 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. No, 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. No, the Commissioner confirms that a determination will not be made under section 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 45B
Income Tax Assessment Act 1936 section 45C