Private ruling: Rollover relief
Date of advice: 24 August 2021
Published: November 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 30 June 20XX

Ruling: Q1: Is Unit Trust and all of its unit holders able to claim the rollover relief under Subdivision 124-N in respect of the restructure? | A1: Yes. Based on the information provided, all of the requirements in Subdivision 124-N will be satisfied. Therefore, the Unit Trust and all of its unit holders are eligible to claim the rollover relief in relation to the restructure.

Relevant facts and circumstances: Trust A was established on XX XXX 20XX and is governed by the terms of the trust deed. The sole unit holder of Trust A is Trust B. There have been no distributions of non-assessable amounts that would be subject to CGT event E4 as the accounting distributions have been equal to the taxable income of Trust A. A restructure of Trust A will be undertaken by converting the trust structure into a corporate structure. A newly incorporated company (NewCo) will be incorporated as part of the restructure. The restructure will commence in or around late August 20XX where all of its assets will be transferred to NewCo and some of the liabilities will be refinanced into NewCo. Trust A will be terminated within 6 months from this date. The restructure period will commence in or around late August 20XX and will end in or around late February 20XX. Trust A and NewCo will both choose to obtain rollover relief under Subdivision 124-N. Trust B will choose to obtain rollover relief in relation to the ending of their units in Trust A under Subdivision 124-N.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-70 | Income Tax Assessment Act 1997 Subparagraph 124-780(1)(a)(i) | Income Tax Assessment Act 1997 Section 124-N


This ruling applies for the following period: