Private ruling: Company B - Treasury Share Account
Published: November 2013

Ruling: Q2: Do journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the purchase of Company B shares and their provision to shareholders under the Company B dividend reinvestment plan cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997? The Commissioner has ruled that: No . Journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the purchase of Company B shares and their provision to shareholders under the Company B dividend reinvestment plan do not cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997.




Subject: Company B - Treasury Share Account: In order to protect the privacy and commercial in-confidence component of this private binding ruling the following summary is provided. | Question 1: Do journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the buy-back of Company B shares cause that account to be a share capital account for the purposes of section 975-300 of the Income Tax Assessment Act 1997 (ITAA 1997)? | No. Journal entries in the Company B legal entity account titled "Treasury Shares" in connection with the buy-back of Company B shares do not cause that account to be a share capital account for the purposes of section 975-300 of the ITAA 1997.