Taxpayer entitled to scrip for scrip roll-over relief - AXA Asia Pacific Holdings
07 Dec 2009
The Federal Court (Jessup J) has held that the taxpayer was entitled to partial scrip-for-scrip roll-over relief under Subdivision 124-M of ITAA 1997 on the sale of a wholly-owned subsidiary by means of a series of transactions devised by the advisory arm of Macquarie Bank Limited.
The Commissioner unsuccessfully argued that the taxpayer and the entity which acquired the shares in the subsidiary did not deal with each other “at arm’s length” within the meaning of s 124-780(4) of ITAA 1997, and that the taxapayer was not, therefore, entitled to the relief sought. The Court also held that Part IVA had no application to deprive the taxpayer of the roll-over relief to which it was otherwise entitled: AXA Asia Pacific Holdings Ltd v FCT  FCA 1427 (Federal Court, Jessup J, 4 December 2009).
For a copy of the decision, go here