BR Pub 19/05 - BR Pub 19/06
Issued
05 Dec 2019
Effective 
These rulings will apply for an indefinite period beginning on 1 April 2020

Income tax - treatment of alteration to rights attached to shares under section CB 4; Income tax - treatment of a disposal of shares with altered rights under section CB 4

The rulings concern an arrangement where a shareholder holds shares in a company and the shares were acquired for the purpose of disposal. Subsequently, the rights attached to the shares are altered and the following applies: The shares are in a company registered under the Companies Act 1993; the alteration is not structured as a cancellation and issue of shares. To avoid doubt, the rulings do not include an arrangement where s BG 1 applies to void the arrangement. The rulings conclude that an alteration of share rights does not result in a disposal of personal property for the purposes of s CB 4, and the time of acquisition of the shares where the rights attached to them are altered after acquisition is the time the shares were acquired before the alteration.

Rulings:

BR Pub 19/05

BR Pub 19/06

TIB Volume 32 No 1 February 2020