| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052371606696
Date of advice: 18 March 2025
Ruling
Subject: Share capital account
Question 1
Does a reserve account in the audited financial reports of Company A form part of Company A's 'share capital account' as defined in section 975-300 of the Income Tax Assessment Act 1997?
Answer 1
Yes.
This ruling applies for the following periods:
Income year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Company A is a company incorporated in Australia.
Company A issued ordinary shares for $X per share.
For accounting purposes, Company A allocated part of the issue price of the shares to a reserve account.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 975-300