Private ruling: CGT - bonus shares
Date of advice: 15 May 2024
Published: 24 June 2024
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 15 August 1984

Ruling: Q1: Are your XX bonus shares issued from a share premium account exempt from capital gains tax under subdivision 130A of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Your XX shares are exempt from capital gains tax under subdivision 130A of the ITAA 1997. The original shares were acquired before 20 September 1985, no part of the bonus shares were treated as dividends, the bonus shares were not partly paid on issue, and the bonus shares were issued from a genuine share premium account. Therefore, you are taken to have acquired the bonus shares before 20 September 1985 and they are not subject to capital gains tax.

Relevant facts and circumstances: You purchased XX shares on XXXX. You participated in the XX Bonus Option Plan from XXXX after which you were issued with XX bonus shares. The bonus shares were issued from a share premium account from XXXX to XXXX. You did not receive any dividends for the bonus shares. The bonus shares were not partly paid on issue.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 130A