Private ruling: CGT - subdivision
Date of advice: 5 December 2024
Published: 13 January 2025
Ruling period: Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the capital gain made by Company A from CGT event A1 happening to its shares in Company B entirely disregarded under section 768-505 of the Income Tax Assessment Act 1997 ? | A1: Yes.

Relevant facts and circumstances: Company A is a company incorporated in Australia. Company A owned more than 10% of the shares in Company B. Company A did not exercise control over the affairs of Company B. Company B is a company incorporated outside Australia. Company A disposed of its entire shareholding in Company B. The 'active foreign business asset percentage' of Company B was calculated to be 100% under section 768-520 of the Income Tax Assessment Act 1997 .

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 768-505