Private ruling: Return of capital
Date of advice: 31 January 2022
Published: April 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: In 20XX income year

Ruling: Q1: Will the Commissioner make a further determination that subsection 45C(3) of the Income Tax Assessment Act 1936 applies to the whole, or a part, of the return of capital by Company A (Capital Return)? | A1: No

Relevant facts and circumstances: Company A is an Australian resident company. Following the disposal of some of its business assets, it intends to distribute part of the sales proceeds to its shareholders by way of an equal capital reduction.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 45C(3)

Reasons for decision: Summary: Having regard to the relevant circumstances of the scheme the Commissioner will not make a further determination that subsection 45C(3) of the ITAA 1936 applies to the whole, or a part, of the return of capital by Company A (Capital Return).