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Edited version of private advice
Authorisation Number: 1051933866011
Date of advice: 7 February 2022
Ruling
Subject: Special dividend
Question 1
Will any capital gain or capital loss that Company A makes from CGT event A1 happening to its shareholding in Company B be disregarded pursuant to section 125-155 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No.
Question 2
Will all of the Special Dividend paid by Company A be a frankable distribution under section 202-40 of the ITAA 1997?
Answer
Yes.
Question 3
Will the Commissioner make a determination under subsection 45A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) that section 45C of the ITAA 1936 applies to the whole of, or any part of the Special Dividend?
Answer
No.
Question 4
Will the Commissioner make a determination under paragraph 45B(3)(b) of the ITAA 1936 that section 45C of the ITAA 1936 applies to the whole of, or any part of the Special Dividend?
Answer
No.
Question 5
Will the Commissioner make a determination under paragraph 177EA(5)(a) of the ITAA 1936 that a franking debit arises in Company A's franking account in respect of the Special Dividend?
Answer
No.
Question 6
Will the Commissioner make a determination under paragraph 204-30(3)(a)of the ITAA 1936 that a franking debit arises in Company A's franking account in respect of the Special Dividend?
Answer
No.