Private ruling: Corporate restructure
Published: November 2013
Ruling period: Year ended 30 June 20xx
Date scheme commenced: During the year ended 30 June 20xx

Ruling: Q1: Will amending the constitution of the trust cause a CGT event in Division 104 of the ITAA 1997 to happen? | A1: No. | Q2: Do the ordinary shares held by the trust constitute 'traditional securities' of the trust (as defined in subsection 26BB(1) of the ITAA 1936)? | A2: No. | Q3: Will the ordinary shares and the RPS held by the trust be treated as separate CGT assets under section 108-5 of the ITAA 1997? | A3: Yes. | Q4: To the extent a gain or loss is made by the trust in relation to the disposal of the ordinary shares held by the trust, will such a gain or loss be subject to the CGT provisions in Part 3-1 of the ITAA 1997, and not section 6-5, section 8-1 or Division 230 of the ITAA 1997? | A4: Yes. | Q5: Will CGT event A1 happen under section 104-10 of the ITAA 1997 when the trust disposes of its ordinary shares? | A5: Yes. | Q6: Will the time of CGT event A1 be the date on which the trust enters into the contract for the disposal of its ordinary shares pursuant to paragraph 104-10(3)(a) of the ITAA 1997? | A6: Yes. | Q7: To the extent the trust makes a capital gain from CGT event A1 in respect of the ordinary shares held by the trust, will the trust be entitled to a discount percentage of 50% in respect of the capital gain pursuant to subparagraph 115-100(a)(ii) of the ITAA 1997? | A7: Yes. | Q8: Do the RPS held by the trust constitute 'traditional securities' of the trust (as defined in subsection 26BB(1) of the ITAA 1936)? | A8: No. | Q9: To the extent a gain or loss is made by the trust in relation to the disposal of the RPS held by the trust, will such a gain or loss be subject to the application of the CGT provisions in Part 3-1 of the ITAA 1997, and not section 6-5, section 8-1 or Division 230 of the ITAA 1997, or section 26BB or section 70B of the ITAA 1936? | A9: Yes. | Q10: Will CGT event A1 happen under section 104-10 of the ITAA 1997 when the trust disposes of its RPS? | A10: Yes. | Q11: Will the time of CGT event A1 be the date on which the trust enters into the contract for the disposal of its RPS pursuant to paragraph 104-10(3)(a) of the ITAA 1997? | A11: Yes. | Q12: To the extent the trust makes a capital gain from CGT event A1 in respect of the RPS held by the trust, will the trust be entitled to a discount percentage of 50% in respect of the capital gain pursuant to subparagraph 115-100(a)(ii) of the ITAA 1997? | A12: Yes. | Q13: Under section 116-20, will the capital proceeds for the disposal of the ordinary shares and RPS by the trust be calculated by apportioning the capital proceeds between the ordinary shares and RPS by reference to their market value? | A13: Yes. | Q14: Will the loan from the trust to the company be a financial arrangement of the trust to which Division 230 of the ITAA 1997 will apply? | A14: Yes. | Q15: If the answer to Question 14 is yes, will interest income derived by the trust in respect of its loan to the company be assessable to the trust on an accruals basis in accordance with the accruals method under Subdivision 230-B of the ITAA 1997? | A15: Yes. | Q16: If the answer to Question 14 is yes, will subsection 230-20(4) of the ITAA 1997 apply to prevent any gain or loss made by the trust in relation to its loan to the company from being included in its assessable income (or allowed as an allowable deduction) under other provisions outside of Division 230 of the ITAA 1997 for the same or any other income year? | A16: Yes. | Q17: Will the transfer of units to the trust result in the trust being a 'public trading trust' under subsection 102R(1) of the ITAA 1936 for the year ending 31 December 20XX? | A17: No. | Q18: Does the Commissioner agree that there is no reasonable basis to issue a determination to the trust, pursuant to the provisions in Part IVA of the ITAA 1936, in connection with a scheme comprising of all or some of the steps in the restructure? | A18: Yes.

Relevant facts and circumstances: The taxpayer has applied for a private ruling in relation to matters concerning a corporate restructure.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 103-10 | Section 104-10 | Section 108-5 | Section 110-25 | Section 115-5 | Section 115-10 | Section 115-15 | Section 115-20 | Section 115-25 | Section 115-45 | Section 115-100 | Section 116-20 | Section 116-30 | Section 116-40 | Section 230-20 | Section 230-45 | Section 230-100 | Section 230-105 | Section 230-115 | Section 230-310 | Section 230-445 | Section 230-510 | Section 995-1 | Income Tax Assessment Act 1936 Section 26BB | Section 70B | Division 6C | Section 102N | Section 102R | Section 159GP | Other legislation: | Section 257-75(1) of Schedule 1 of the Tax Administration Act 1953 | Section 254K of the Corporations Act 2001 (Cth) ( Corporations Act ) | Section 254T of the Corporations Act