Private ruling: Proposed Return of Capital
Published: February 2014
Ruling period: 1 January 2014 to 31 December 2014
Date scheme commenced: 1 January 2014

Ruling: Q1: Will the Commissioner confirm that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 ( ITAA 1936 )? | A1: Yes | Q2: Will the Commissioner confirm that he will not make a determination under sections 45A and 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital? | A2: Yes


Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1), | Income Tax Assessment Act 1936 Section 45A, | Income Tax Assessment Act 1936 Section 45B, | Income Tax Assessment Act 1936 Section 45C, | Income Tax Assessment Act 1936 Subsection 177D(b), | Income Tax Assessment Act 1936 Section 45C, | Income Tax Assessment Act 1997 Section 995-1, | Income Tax Assessment Act 1997 Section 975-300 and | Income Tax Assessment Act 1997 Section 197-50.


Questions at issue: In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided. | The taxpayer requested a ruling based on the following questions: | 1. Will the Commissioner confirm that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the ITAA 1936? | The Commissioner has ruled that: 1. Yes, the Commissioner confirms that no part of the Return of Capital will constitute a dividend as defined in subsection 6(1) of the ITAA 1936. | 2. Yes, the Commissioner confirms that he will not make a determination under sections 45A and 45B of the ITAA 1936 that section 45C of the ITAA 1936 will apply to any part of the Return of Capital.