26 Oct 099 Government to amend CGT rules for dual listed companies
In a media release issued on 22 October 2009, the Assistant Treasurer, Senator Nick Sherry, announced that the Government will amend the income tax law to make it easier for companies participating in dual listed company arrangements to access CGT demerger provisions.
The CGT rules allow companies in dual listed company arrangements to exclude their special voting shares when determining their eligibility to defer CGT on demergers. Currently, a company must meet the legislative definition of a "dual listed company arrangement" which requires companies to have common or almost identical boards of directors in order to make use of CGT demerger provisions.
But in some cases, companies may be unable to meet the dual listed company arrangement requirements because other regulations prevent them from having common or identical boards of directors. The Government will amend the definition of a "dual listed company arrangement" so that companies will not have to meet the common or identical boards of directors requirement if regulations prevent them from doing so.
The Assistant Treasurer said that the amendments to the dual listed company arrangement definition will form part of legislation implementing into domestic law three tax treaties the Government signed earlier this year with New Zealand, Belgium and Jersey. "The Government wishes to introduce the Bill before the end of this year's parliamentary sittings but, as is normal practice with treaty Bills, will not do so until such time as the Joint Standing Committee on Treaties has completed its report and this is considered by the Government," the Minister said.
For a copy of the Minister's media release, No 2009/078, 22 October 2009, go here