Draft Taxation Determination

TD 2011/D9W - Notice of Withdrawal

Income tax: employee share schemes: if a share in a 'no goodwill' professional practice company is acquired by a practitioner-shareholder (or a new practitioner-shareholder), will the Commissioner accept, for the purposes of determining whether that acquisition was at a discount within the meaning of subsection 83A-20(1) of the Income Tax Assessment Act 1997, that the goodwill of the company can be taken to have no value?

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Notice of Withdrawal

Draft Taxation Determination TD 2011/D9 is withdrawn with effect from today.

1. TD 2011/D9 concluded that yes, the Commissioner will accept, for the purposes of determining whether that acquisition was at a discount within the meaning of subsection 83A-20(1) of the Income Tax Assessment Act 1997, that the goodwill of the company can be taken to have a value of nil.

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 Following consultations with the Professional Firms Working Group, TD 2011/26, TD 2011/D9 and TD 2011/D10 would be withdrawn and replaced by the administrative treatment outlined in Administrative treatment: acquisitions and disposals of interests in 'no goodwill' professional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

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