CGT Determination Number 28

TD 28

Capital Gains: Is the issue or redemption of redeemable preference shares taken into account in determining the application of section 160ZZS?

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FOI status:

may be releasedFOI number: I 1019204

1. The issue or redemption of redeemable preference shares by a company will be taken into account in applying the majority underlying interest test in section 160ZZS unless on the facts, the arrangement is seen to be a financing arrangement and treated as such by the parties for all purposes (including the section 46 rebate).

Commissioner of Taxation
28 November 1991

References

ATO references:
NO TLG CGT 251187; 220988

Subject References:
Redeemable preference shares

Legislative References:
160ZZS;
46