Taxation Determination
TD 2000/2
Income tax: capital gains: does CGT event G1 in section 104-135 of the Income Tax Assessment Act 1997 (about capital payments for shares) apply to a bonus share issued out of a share capital account?
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
may be releasedFOI number: I 1021083| Preamble |
| This Taxation Determination is a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and is legally binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a public ruling and how it is legally binding on the Commissioner. |
| Date of effect |
| This determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
1. No. Subdivision 130-A of the Income Tax Assessment Act 1997 ('the 1997 Act') deals specifically with the treatment of bonus shares. It applies rather than section 104-135.
Note:
2. This Taxation Determination rewrites and replaces Taxation Determination TD 32. There is no material change in this Taxation Determination to the views expressed in TD 32 apart from updating it with the rewritten income tax law in the 1997 Act and with recent Corporations Law changes.
3. Subdivision 130-A and section 104-135 of the 1997 Act, to which this Determination refers, express the same ideas, respectively, as Divisions 8 and 8A and section 160ZL of the Income Tax Assessment Act 1936.
Commissioner of Taxation
19 January 2000
Previously issued as TD 1999/D45
References
ATO references:
NO 99/9892-6
BO NOR CGT 5016/586/40
Related Rulings/Determinations:
TD 32
Subject References:
bonus shares
CGT event G1
payment
share capital account
shares
Legislative References:
ITAA 1997 Subdivision 130-A
ITAA 1997 104-135
ITAA 1936 Division 8
ITAA 1936 Division 8A