Private ruling: Restructure and liquidation of the Head Co tax consolidated group
Published: July 2012

Ruling: The Commissioner was asked whether: | · a capital gain, that is not disregarded, will be made in relation to the units held by the trust as a result of the receipt of its share of the liquidator's distribution. | · the trustee of the trust will be assessed and liable to pay tax on any part of the net income of the trust in respect of the restructure. | · the trustee will be assessed and liable to any family trust distribution tax under Division 271 of Schedule F to the Income Tax Assessment Act 1936 (ITAA 1936) in respect of the dividend or liquidator's dividend to Purchaser Co. | The Commissioner ruled that: | · a capital gain that is not disregarded will not be made as a result of the trust's receipt of its share of the liquidator's distribution. | · the trustee of the trust will not be assessed on any part of the 'net income' as defined in subsection 95(1) of the ITAA 1936 as a result of the restructure. | · the trustee of the trust will not be liable to pay family trust distribution tax under Division 271 of Schedule F to the ITAA 1936 on the amount that it will distribute to Purchaser Co.




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