Published on 13 Dec 2005
| Took place at Rialto Hotel on Collins, Melbourne
When the demerger relief was first introduced in 2002, it appeared to offer an important new means for effecting corporate reorganisations without triggering either capital gains tax or assessable dividend income. However, in practice, companies (particularly non-listed companies) are frequently confronted with the anti-avoidance rules in s 45B, which can create assessable dividend income. The recently released practice statement PS LA 2005/21 provides some examples of how the Commissioner approaches the enigmatic application of s 45B.
Section 45B and demergers
Author(s): Richard SHADDICK
This presentation covers the following topics:
evidence of the intended scope of the demerger relief
the need for dividend relief (currently the subject of litigation)
the 'demerger specific' aspect of s 45B
the 'dividend substitution' aspect of s 45B for demergers
examples of situations where s 45B will, or will not apply
in a word...is your proposed demerger...'genuine'?