Three Class Rulings were released by the ATO on Wed 26.7.2017:
- CR 2017/44 – scrip-for-scrip roll-over: acquisition of units in Centuria Urban REIT by Centuria Metropolitan REIT. It provides that unit holders who made a capital gain from disposing of their Centuria Urban REIT units to the responsible entity of Centuria Metropolitan REIT can choose scrip-for-scrip roll-over;
- CR 2017/45 – returns of share capital: IPE Limited. It states that returns of share capital paid to IPE shareholders are not dividends and that ss 45A, 45B and 45C of ITAA 1936 do not apply. Further, the relevant CGT events are CGT event G1 for shareholders who continued to own the shares at the relevant payment date, and CGT event C2 for shareholders who stopped owning the shares before the payment date; and
- CR 2017/46 – TNG Limited: demerger of Todd River Resources Limited. It provides that TNG shareholders who made a capital gain when CGT event G1 happened to their TNG shares under the demerger can choose demerger roll-over.
Each Class Ruling applies from 1 July 2016 to 30 June 2017.
[ATO Law website: LTN 26/7/17]