Capital Gains Tax Determination

TD 32

Capital Gains: Does section 160ZL apply to a bonus share issue out of a genuine share premium account?

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FOI status:

may be releasedFOI number: I 1019251

1. No. Divisions 8 and 8A of the CGT provisions deal specifically with the treatment of bonus shares and would apply in preference to section 160ZL.

2. In any event, section 160ZL only applies where a company "pays" an amount. The crediting out of a share premium account is not taken to be a payment (IT 2603).

Commissioner of Taxation
28 November 1991

References

ATO references:
NO LAF BRIS

Related Rulings/Determinations:

IT 2603

Subject References:
Bonus share issue
Share premium account

Legislative References:
160ZL
Div 8
8A