Draft Taxation Determination

TD 1999/D45

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?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 2000/2.

FOI status:

Not previously released in draft form

Preamble

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 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.

Your comments

We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Commissioner of Taxation
4 August 1999

References

ATO references:
NO 99/9892-6
BO NOR CGT 5016/586/40

Subject References:
bonus shares
CGT event G1
payment
share capital account
shares

Legislative References:
ITAA 1997 Subdivision 130-A
Section 104-135
ITAA 1936 Division 8
Division 8A
Section 160ZL