Private ruling: Disposal of shares - subdivision 126-B roll-over
Date of advice: 12 November 2024
Published: 13 January 2025
Ruling period: 1 December 2024 to 30 November 2025
Date scheme commenced: In the income year ending 30 November 2025

Ruling: Q1: Will Company A be eligible to choose to obtain a roll-over under Subdivision 126-B of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the disposal of the shares it held in Company B to Company C? | A1: Yes.

Relevant facts and circumstances: Company A and Company C are both companies incorporated in a foreign country. Company A is wholly owned by Company C. Company A is the sole shareholder of Company B (a company incorporated in Australia). More than 50% of the market values of Company B's assets consist of land in Australia. Company A proposes to dispose all of its shares in Company B to Company C.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 126-B

Reasons for decision: Summary: The proposed disposal will satisfy the requirements of sections 126-45 and 126-50 of the ITAA 1997. Therefore, Company A will be eligible to choose to obtain a roll-over under Subdivision 126-B of the ITAA 1997in respect of the disposal of its shares in Company B to Company C.