Private ruling: Market valuation of foreign shares
Date of advice: 22 July 2021
Published: September 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner accept for the purposes of section 855-45 of the Income Tax Assessment Act 1997 that the market value of your shares in the company as at XXX 20XX was XXX? | A1: Yes. The Commissioner has considered the valuation provided and accepts that valuation reflects the market value.

Relevant facts and circumstances: You arrived in Australia on XXXX 20XX from Country Y. Your arrival in Australia was for the purposes of residing permanently in Australia and it is this date you became a resident for tax purposes. You are taken to have acquired certain assets at the time you became a resident for the market value at that time, shares in an unlisted foreign company, Company 1. As Company 1 is an unlisted company, there was no market value available for XXX 20XX. Company 1 issued an email to investors on XXXX 20XX providing a price for the shares between XXX to XXX per share. The price per share was verified as XXXX on XXX 20XX by way of official notification of the offer to acquire Company 1 shares. You are proposing to use the market method for the valuation of 100% of your holding of company 1 shares at XXX 20XX. Company 2 is a broker acting for the purchaser, an affiliate of XXXX. The offer price for the Company 1 shares has been increasing through the XXXX - XXXX period. The required valuation date is XXXX 20XX. The share sale offer date was XXX 20XX, the offer acceptance date was XXX 20XX. There were no different prices offered for the company 1 shares by Company 2 in the XXX 20XX - XXX 20XX period. You disposed of XX% of your holding only under this offer and you retain XXX shares. You are not related to the purchaser.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 855-45


This ruling applies for the following period: