In the 2012-13 Federal Budget, the Government announced it would amend the integrity provisions of the CGT scrip-for-scrip roll-over to remove what it said were significant tax minimisation opportunities. The changes are intended to apply from 7:30pm (AEST) on 8 May 2012. Treasury on Fri 13.7.2012, released a proposals paper designed to form the basis of consultation on the policy design of this announcement. The proposals paper sets out, in broad terms, how the measure may be implemented. The purpose of the paper is to provide interested parties with an opportunity to comment on the policy design of this measure.
The amendments are designed to ensure that taxpayers cannot avoid the scrip-for-scrip roll-over’s integrity provisions by holding interests to acquire ownership rights, such as convertible preference shares, rather than the underlying shares; and defer indefinitely the CGT liability that would have otherwise arisen under the integrity provisions for the on-sale of the target entity by the acquiring entity.
COMMENTS are due by 13 August 2012.
[LTN 134, 13/7]