Private ruling: Liquidator's distribution
Date of advice: 17 September 2020
Published: November 2020
Ruling period: 1/7/20XX to 30/6/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Will the distributions by the Liquidator be a dividend under section 47 of the Income Tax Assessment Act 1936 (ITAA 1936) or a non-share dividend as defined in section 974-120 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. | Q2: Will section 45B of the ITAA 1936 apply to the distributions by the Liquidator? | A2: No. | Q3: Will Part IVA of the ITAA 1936 apply to the distributions by the Liquidator? | A3: No.

Relevant facts and circumstances: Company A is the trustee of C Unit Trust and holds non-share equity interests issued by Company B. Due to the liquidation of Company B, Company A will receive distributions by the Liquidator.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 47(1) | Income Tax Assessment Act 1936 Section 45B | Income Tax Assessment Act 1936 Part IVA | Income Tax Assessment Act 1997 Section 974-120 | Unless otherwise stated, all legislative references in this ruling are to the Income Tax Assessment Act 1936 (ITAA 1936)

Reasons for decision: Summary: The proposed distributions by the Liquidator of Company B to the C Unit Trust will not be a dividend or a non-share dividend pursuant to section 47. Section 45B of the ITAA 1936 will not apply to the distributions by the Liquidator. Part IVA will not apply to the distributions by the Liquidator.