Private ruling: CGT losses
Published: January 2014
Ruling period: Year ended 30 June 2010
Date scheme commenced: 21 August 2006

Ruling: Q1: Did you make a capital loss on your shares when the company was deregistered? Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-5. | Income Tax Assessment Act 1997 Section 102-10. | Income Tax Assessment Act 1997 Section 102-15. | Income Tax Assessment Act 1997 Section 102-20. | Income Tax Assessment Act 1997 Paragraph 104-25(1)(a). | Income Tax Assessment Act 1997 Paragraph 104-25(2)(b). | Income Tax Assessment Act 1997 Subsection 104-25(3). | Income Tax Assessment Act 1997 Paragraph 104-145(1)(a). | Income Tax Assessment Act 1997 Subsection 104-145(2). | Income Tax Assessment Act 1997 Subsection 104-145(4).

Reasons for decision: Summary: You can make a capital loss when a company is deregistered in accordance with Corporations Law as your ownership of that company's shares ends at that time due to them being cancelled. In your case, you have made a capital loss when the companies were deregistered. Generally you make a capital loss if your reduced cost base is greater than your capital proceeds. The excess is your capital loss. Your capital loss can be calculated as follows: Reduced cost base = Purchase price + Incidental costs of acquiring shares Capital loss = Reduced cost base Capital proceeds (Nil)

The shares have been deregistered.