The ATO has released a Decision Impact Statement on the Full Federal Court decision in FCT v Fabig & Dickinson [2013] FCAFC 99. In that case, the Court allowed the Commissioner’s appeal and held that the AAT, at first instance, had erred in finding that CGT scrip-for-scrip roll-over relief was available to 2 shareholders in relation to the exchange of their shares in a company under an arrangement entered into in the 2007 income year.
The ATO said the Full Federal Court decision does not impact upon the Commissioner’s practices. In applying para 124-780(2)(c) of the ITAA 1997, the ATO said it will evaluate whether participation was available on substantially the same terms by reference to the arrangement in question and also, consistent with Justice Davies’ judgment (at [25]), other matters beyond the arrangement itself. This will include, in appropriate cases, any Shareholders’ Agreement.
[LTN 124, 1/7/14]