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Edited version of your written advice
Authorisation Number: 1013030074279
Date of advice: 15 June 2016
Ruling
Subject: Income tax treatment of return of capital
In order to protect the privacy and commercial-in-confidence components of this private ruling the following summary is provided.
Question 1
Will any part of the return of capital be a dividend as defined in subsection 6(1) and the exclusion under subsection 6(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
No.
Question 2
Will the Commissioner make a determination under subsection 45A(2) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole or part of the capital amount?
Answer
No.
Question 3
Will the Commissioner make a determination under subsection 45B(3) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole or part of the capital amount?
Answer
No.