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?

• Please note that the PDF version is the authorised version of this ruling.
  This ruling contains references to repealed provisions, some of which may have been rewritten. The ruling still has effect. Paragraph 32 in TR 2006/10 provides further guidance on the status and binding effect of public rulings where the law has been repealed or repealed and rewritten. The legislative references at the end of the ruling indicate the repealed provisions and, where applicable, the rewritten provisions.
  This document has changed over time. View its history.

FOI status:

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