Draft Taxation Determination

TD 2011/D10W - Notice of Withdrawal

Income tax: when considering the application of subsection 159GZZZQ(2) of the Income Tax Assessment Act 1936 to an exiting vendor practitioner-shareholder by a 'no goodwill' incorporated professional practice, will the Commissioner consider that the buy-back price is less than the market value of the shares merely because the price is calculated not to reflect the underlying goodwill of the company?

• Please note that the PDF version is the authorised version of this withdrawal notice.
  This document has changed over time. View its history.

Notice of Withdrawal

Draft Taxation Determination TD 2011/D10 is withdrawn with effect from today.

1. TD 2011/D10 concluded that no, the Commissioner will accept in calculating the market value of the share in applying subsection 159GZZZQ(2) of the Income Tax Assessment Act 1936, that the goodwill of the company can be taken to have no value.

2. Following consultations with the Professional Firms Working Group, TD 2011/26, TD 2011/D9 and TD 2011/D10 would be withdrawn and replaced by the administrative treatment outlined in Administrative treatment: acquisitions and disposals of interests in 'no goodwill' professional partnerships, trusts and incorporated practices published today.

Commissioner of Taxation
4 May 2016

References

ATO references:
NO 1-80TSE13

Related Rulings/Determinations:

IT 2540
TR 2006/10
TD 2011/26
TD 2011/D9

Other References:
Administrative treatment: acquisitions and disposals of interests in 'no goodwill' professional partnerships, trusts and incorporated practices