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Edited version of private advice
Authorisation Number: 1051927265568
Date of advice: 29 November 2021
Ruling
Subject: Demerger
Question 1
As a consequence of section 125-155 of the Income Tax Assessment Act 1997 (ITAA 1997), will Entity X disregard any capital gain under CGT event A1 upon the proposed transfer of its shares in Entity Y to its shareholders?
Answer
Yes.
Question 2
As a consequence of the proposed transfer of the shares in Entity Y to the Entity X shareholders, would Entity X be required under subsection 45D(1A) of the Income Tax Assessment Act 1936 (ITAA 1936) to give a copy of a notice to its shareholders?
Answer
No.
Relevant facts and circumstances
Entity X applied for a private binding ruling in respect of the issue of transferring its shares in Entity Y as a result of a demerger.
Relevant legislative provisions
Section 125-155 of the ITAA 1997
Section 125-55 of the ITAA 1997
Section 125-60 of the ITAA 1997
Section 125-65 of the ITAA 1997
Section 125-70 of the ITAA 1997
Section 125-65 of the ITAA 1997
Subsection 45D(1A) of the ITAA 1936