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Edited version of your written advice
Authorisation Number: 1051206013822
Date of advice: 30 March 2017
Ruling
Subject: Division 855 of the ITAA 1997 and Taxable Australian Real Property
Question 1
Will Foreign Company ('ForCo') be required to recognise a capital gain on the sale of shares in X Company in its assessable income pursuant to section 6-10 and Subdivision 855-A of the Income Tax Assessment Act 1997 ('ITAA 1997')?
Answer
No.
Question 2
Will ForCo otherwise be required to include any gain made on the sale of shares in X Company in its assessable income pursuant to section 6-5 of the ITAA 1997?
Answer
No.
Question 3
If the answers to Question 1 and Question 2 are 'No', does Part IVA of the Income Tax Assessment Act 1936 ('ITAA 1936') apply to ForCo's sale of shares in X Company?
Answer
No.