Private ruling: Demerger
Date of advice: 13 May 2021
Published: July 2021

Ruling: Q1: Will MidCo1 be entitled to choose demerger roll-over relief pursuant to section 125-55 of the Income Tax Assessment Act 1997 (ITAA 1997) as a result of the demerger? | A1: No. | Q2: Will the Commissioner make a determination under subsection 45B(2) of the Income Tax Assessment Act 1936 (ITAA 1936) that section 45B of the ITAA 1936 will apply to the in-specie distribution made by ForCo1 to ACo? | A2: No. | Q3: Does the in-specie distribution of shares in OzCo1 give rise to assessable income under subsection 44(1) of the ITAA 1936? | A3: No.




Subject: Demerger: The Commissioner was asked three questions relating to demerger roll-over relief and deemed dividends. | The Commissioner has ruled on each of the questions as outlined: