Income tax: merger between the Mulgrave Central Mill Company Limited and TQ Sugar Limited

Class Ruling CR 2007/113 addressed the income tax consequences of a proposed merger between Mulgrave Sugar Limited (MCM) and TQ Sugar Limited (TQS) for the MCM shareholders.

CR 2007/113 is withdrawn because the proposed merger did not proceed and the Ruling has no binding effect on the Commissioner.

Note: the Ruling concluded, in part, that the conditions for Subdivision 124-M scrip for scrip roll-over would be satisfied. This was incorrect at law because replacement interests were to be issued in a subsidiary member of a wholly owned group. To satisfy the conditions for roll-over in a case where the acquiring entity is a member of a wholly-owned group, it is a requirement under paragraph 124-780(3)(c) of the Income Tax Assessment Act 1997 that replacement interests be issued in the ultimate holding company of the wholly-owned group.