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Edited version of private advice
Authorisation Number: 1051684443233
Date of advice: 25 May 2020
Ruling
Subject: Disposal of shares in an entity
Legislative references in this Ruling are to provisions of the Income Tax Assessment Act 1997 (ITAA 1997) unless otherwise indicated.
Question 1
Will any gain on disposal of the shares by Foreign Co in Aus Co be assessable under subsection 6-5(3) of the ITAA 1997?
Answer
No.
Question 2
Will subsection 855-10(1) of the ITAA 1997 apply to disregard any capital gain or capital loss on the disposal of shares by Foreign Co in Aus Co?
Answer
Yes.