28 Aug 088 Company issuing shares for assets or for services - TR 2008/5This final Taxation Ruling was issued on 27 August 2008. It was previously released in draft form as TR 2008/D1: see 2008 TAXVINE No 1 (11) (18 January 2008). Its full title is "Income tax: tax consequences for a company of issuing shares for assets or for services".
This Ruling is about the tax consequences for companies of issuing shares for assets or for services. In particular it is about:
- whether and in what circumstances there might be a loss or outgoing in acquiring the assets or the services for the purposes of s 8-1 of ITAA 1997, and the amount of that loss or outgoing;
- when and in what circumstances assets which were trading stock of the vendor might be taken to have been bought by the company and for what price, by reason of s 70-95;
- when and in what circumstances the assets might have a cost for the purposes of Division 40, and the amount of that cost; and
- when and in what circumstances the assets might have a cost base for the purposes of the capital gains tax provisions of Parts 3-1 and 3-3, and the amount of that cost base.
For a copy of TR 2008/5, go here