On Wed 29.8.2018, the ATO issued Class Ruling CR 2018/38 (Metcash Limited – Off-market share buy-back).
- This ruling considers the tax consequences for Metcash shareholders who dispose of their ordinary shares under an off-market share buy-back announced on 25 June 2018.
- The ATO treats the buy-back as an off-market purchase under Div 16K ITAA 1936.
- Importantly, the Commissioner will not seek to apply various dividend anti-avoidance rules (in ss 45A, 45B, 45C and 177EA ITAA 1936 and s 204-30 ITAA 1997) to the scheme.
DATE OF EFFECT: 1 July 2018 to 30 June 2019.
[LTN 166, 29/8/18; Tax Month – August 2018]