The Government today Fri 12.10.2012, released draft legislation to remove income tax impediments for business restructures. In particular, these changes would seek to amend the ITAA 1997 (principally Div 124) to:
- provide revenue asset and trading stock roll-overs where interest holders exchange their units in a unit trust for shares in a company;
- broaden beyond consolidated groups the existing revenue asset and trading stock roll-overs that apply for an exchange of shares in a company for shares in another company, so that the roll-overs are not limited to ownership arrangements involving consolidated groups;
- provide adequate integrity by ensuring that the revenue asset and trading stock roll-overs are only available where the asset acquired under a restructure is of the same tax character as the asset exchanged under the restructure; and
- resolve technical defects relating to the revenue asset roll-over that applies where interest holders exchange their shares in a company for shares in another company and to certain CGT trust restructure roll-overs.
COMMENTS are due by 9 November 2012.
[LTN 198, 12/10]