Private ruling: Demerger
Published: April 2014

Ruling: The Commissioner was asked to rule on the following issue: | Will any capital gain or capital loss arising for Company A under CGT event A1 as a result of the transfer of Company B shares to Company A shareholders under the demerger be disregarded pursuant to section 125-155 of the Income Tax Assessment Act 1997 (ITAA 1997)? | The Commissioner has ruled that: | Yes. Any capital gain or capital loss arising for Company A under CGT event A1 as a result of the transfer of Company B shares to Company A shareholders under the demerger will be disregarded pursuant to section 125-155 of the ITAA 1997.