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Edited version of private advice
Authorisation Number: 1051848892834
Date of advice: 15 June 2021
Ruling
Subject: CGT rollover relief
Question
Will Company A be eligible for capital gains tax rollover relief under Subdivision 126-B of the ITAA 1997 in respect of the disposal of all the shares in Company S to Company T?
Answer
Yes.
This ruling applies for the following periods:
Income tax year ended 30 June 20xx
Income tax year ended 30 June 20xx
The scheme commences on:
Income tax year beginning 01 July 20xx
Relevant facts and circumstances
All references to legislation refer to the Income Tax Assessment Act 1997 ('ITAA 1997'), unless otherwise indicated.
Company A (originator) is a member of a tax consolidated group and holder of all the shares (membership interests) in Company S. Company T (recipient) is a foreign resident and member of the same *wholly owned group as Company A. All the membership interests in Company S qualify as section 855-25 indirect Australian real property interests.
Company A is eligible to apply SD 126-B roll-over relief in respect of the disposal of all the shares in Company S to Company T.