The ATO on Wed 8.2.2012, issued Class Ruling CR 2012/10 (Bonus share plan: Australia Foundation Investment Company Limited). It applies from 1 July 2011.
Among other things, the Ruling states that if the company does not credit its share capital account in connection with the issue of the bonus shares, then the value of the bonus shares will not be taken to be a dividend that is included in the assessable income of eligible shareholders under s 44 of the ITAA 1936.
[LTN 25, 8/2]