Private ruling: Demerger
Date of advice: 29 November 2021
Published: February 2022

Ruling: Q1: As a consequence of section 125-155 of the Income Tax Assessment Act 1997 (ITAA 1997), will Entity X disregard any capital gain under CGT event A1 upon the proposed transfer of its shares in Entity Y to its shareholders? | A1: Yes. | Q2: As a consequence of the proposed transfer of the shares in Entity Y to the Entity X shareholders, would Entity X be required under subsection 45D(1A) of the Income Tax Assessment Act 1936 (ITAA 1936) to give a copy of a notice to its shareholders? | A2: No.

Relevant facts and circumstances: Entity X applied for a private binding ruling in respect of the issue of transferring its shares in Entity Y as a result of a demerger.

Relevant legislative provisions: Section 125-155 of the ITAA 1997 | Section 125-55 of the ITAA 1997 | Section 125-60 of the ITAA 1997 | Section 125-65 of the ITAA 1997 | Section 125-70 of the ITAA 1997 | Section 125-65 of the ITAA 1997 | Subsection 45D(1A) of the ITAA 1936