Private ruling: Deceased Estate - subdividing shares
Date of advice: 16 September 2025
Published: 17 November 2025
Ruling period: Year ended 30 June XXXX
Date scheme commenced: XX/XX/XXXX

Ruling: Q1: Will the splitting/subdivision of the shares in Company A and Company B result in a capital gains tax event happening? | A1: No. | Q2: Is the cost base of the split/subdivided shares determined by apportioning the cost base of the original share they were split or subdivided from? | A2: Yes. | Q3: Will any capital gain which may arise to the Estate be disregarded upon the transfer of the subdivided Shares to each of the beneficiary? | A3: Yes.

Relevant facts and circumstances: 1. The Deceased passed away on XX/XX/XXXX. 2. By their last Will, the Deceased bequeathed the whole of her estate to be divided and distributed equally among several eligible beneficiaries. 3. Probate of the Will was granted on XX/XX/XXXX to Executor. 4. Company A and Company B are registered companies under the Corporations Act 2001 . 5. The Deceased held XX shares in Company A at the date of their death. 6. The Deceased held the following shares in Company B at the date of their death: (a) XX A class shares (b) XX B class shares (c) XX C class shares 7. To enable the executor to divide and distribute the shares in Company A and B held by the Estate, it is proposed that Company A and Company B will subdivide each class of share capital of both Company A and Company B in accordance with the requirements in section 254H of the Corporations Act 2001 . 8. It is proposed that shares in Company A will be subdivided on a XX for 1 basis and each class of share capital in Company B will be subdivided on a XX for 1 basis. 9. After the completion of the subdivision of the shares in Company A and Company B, the Executor will transfer XX shares to each of the beneficiaries in Company A and transfer XX shares in each class of Company B to the beneficiaries to fulfil the requirement that the assets of the Deceased's Estate divided and distributed equally to the beneficiaries under the Will.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 108-5 | Income Tax Assessment Act 1997 section 112-25 | Income Tax Assessment Act 1997 subsection 112-25(2) | Income Tax Assessment Act 1997 subsection 112-25(3) | Income Tax Assessment Act 1997 subsection 128-15 | Income Tax Assessment Act 1997 subsection 128-15(2) | Income Tax Assessment Act 1997 subsection 128-15(3) | Income Tax Assessment Act 1997 section 128-20