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Edited version of private advice
Authorisation Number: 1051937299910
Date of advice: 31 January 2022
Ruling
Subject: Return of capital
Question
Will the Commissioner make a further determination that subsection 45C(3) of the Income Tax Assessment Act 1936 applies to the whole, or a part, of the return of capital by Company A (Capital Return)?
Answer
No
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
In 20XX income year
Relevant facts and circumstances
Company A is an Australian resident company. Following the disposal of some of its business assets, it intends to distribute part of the sales proceeds to its shareholders by way of an equal capital reduction.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 45C(3)
Reasons for decision
Having regard to the relevant circumstances of the scheme the Commissioner will not make a further determination that subsection 45C(3) of the ITAA 1936 applies to the whole, or a part, of the return of capital by Company A (Capital Return).