Private ruling: Application of "value donor" concession in section 707-325 of the IT(TP)A 1997?
Published: March 2013

Ruling: Q1: Can ACo apply the "value donor" concession in section 707-325 of the IT(TP)A 1997? | A1: Yes

Relevant facts and circumstances: 1. ACo will be the head company of an income tax consolidated group. 2. ACo intends that the subsidiary members of the consolidated group will include: · BCo; and · CCo; 3. ACo intends that, pursuant to section 707-325 of the IT(TP)A 1997, each member of the consolidated group, other than BCo, will be a value donor (as defined in subsection 707-325(1) of the IT(TP)A) 1997 in relation to BCo as the real loss-maker. 4. ACo intends that BCo will transfer its tax losses to ACo (as the head company).

Relevant legislative provisions: Income Tax (Transitional Provisions) Act 1997 Sections 707-325

Reasons for decision: Summary: As ACo meets all of the requirements contained under section 707-325 of the Income Tax (Transitional Provisions) Act 1997 , A Co will be eligible for the "value donor" concession