EV 1052318085782currentnon-binding advice

CGT - subdivision

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Is the capital gain made by Company A from CGT event A1 happening to its shares in Company B entirely disregarded under section 768-505 of the Income Tax Assessment Act 1997 ?

2

1 Yes. This ruling applies for the following periods: Income year ending 30 June 20XX The scheme commenced on: 1 July 20XX

3

Company A is a company incorporated in Australia. Company A owned more than 10% of the shares in Company B. Company A did not exercise control over the affairs of Company B. Company B is a company incorporated outside Australia. Company A disposed of its entire shareholding in Company B. The 'active foreign business asset percentage' of Company B was calculated to be 100% under section 768-520 of the Income Tax Assessment Act 1997 .

4

Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 768-505