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This edited version has been archived due to the length of time since original publication.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 written advice

Authorisation Number: 1013125194928

Date of advice: 15 December 2016

Ruling

Subject: Variation of share rights and capital gain tax

Question 1

Will CGT event C2 happen pursuant to subsection 104-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997) when the terms of the units are varied?

Answer

No

Question 2

Will CGT event H2 happen pursuant to subsection 104-155(1) of the ITAA 1997 when the terms of the units are varied, and will the capital proceeds in relation to CGT event H2 be equal to nil?

Answer

Yes

Question 3

Will Division 725 or Division 727 of the ITAA 1997 apply when the trustee varies the rights of the units?

Answer

No

This ruling applies for the following periods:

1 July 20XX - 30 June 20XX

The scheme commences on:

1 July 20XX