Private ruling: Return of capital and special dividends
Date of advice: 14 June 2024
Published: 29 July 2024

Ruling: Q1: Will the return of capital satisfy the definition of 'dividend' in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: No. The return of capital does not constitute a 'dividend' as defined in subsection 6(1) of the ITAA 1936. | Q2: Will the Commissioner make a determination in relation to the return of capital under paragraph 45B(3)(b) of the ITAA 1936 that section 45C of the ITAA 1936 applies? | A2: No. The Commissioner will not make a determination under paragraph 45B(3)(b) of the ITAA 1936 that section 45C of the ITAA 1936 applies to the return of capital. | Q3: Will the Commissioner make a determination in relation to the return of capital under subsection 45A(2) of the ITAA 1936 that section 45C of the ITAA 1936 applies? | A3: No. The Commissioner will not make a determination under subsection 45A(2) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the return of capital. | Q4: Will the Commissioner make a determination under paragraph 177EA(5)(b) of the ITAA 1936 to deny the shareholders imputation benefits in respect of the special dividends? | A4: No. The Commissioner will not make a determination under paragraph 177EA(5)(b) of the ITAA 1936 to deny the shareholders imputation benefits in respect of the special dividends. | Q5: Will the Commissioner make a determination pursuant to paragraph 204-30(3)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to deny the imputation benefits received by the shareholders in relation to the special dividends? | A5: No. The Commissioner will not make a determination under subsection 204-30(3)(c) of the ITAA 1997 to deny the imputation benefits received by the shareholders in relation to the special dividends.




Subject: Return of capital and special dividends: In order to protect the privacy and commercial in-confidence components of this private binding ruling, the following summary is provided: