Source: Taxation In Australia Journal Article
Published Date: 1 Oct 2018
The ATO interpretation of the demerger rules has effectively put them beyond the reach of the vast majority of SME companies. This raises the questions: do the new small business roll-over rules (SBRR) provide an alternative means of achieving a similar outcome? Or of undertaking other share capital dealings in a more flexible manner than provided for by Div 16K of the Income Tax Assessment Act 1936? This article examines demerger relief, when SMEs satisfy the ATO tests, whether the SBRR allows an effective tax-free demerger and whether the safe harbour rules apply. The authors' views are that a change of view from the ATO might be forthcoming to allow SMEs to utilise the SBRR and demerger provisions as freely as they use scrip-for-scrip transactions.
More by John Middleton
The Tax Office insights into issues for Primary Producers - Presentation 28 Apr 2022
The Tax Office insights into issues for Primary Producers podcast - Audio 28 Apr 2022
The Tax Office insights into issues for Primary Producers - Video 28 Apr 2022
Workshop 1: Structuring/restructuring for a new dawn - Paper 18 Nov 2021
Valuations - Placer Dome and RCF - Paper 24 Oct 2018
Recent decisions on valuations and briefing experts - Presentation 27 Jul 2018
Recent decisions on valuations and briefing experts - Paper 27 Jul 2018
SME demergers and capital returns - Is the small business restructure roll-over the answer? - Presentation 31 May 2018
SME demergers and capital returns - Is the small business restructure rollover the answer? - Paper 31 May 2018
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags