15 Oct 12 Removing income tax impediments for business restructures
The Government has previously announced that it would remove income tax impediments for business restructures. In particular, these changes:
- provide revenue asset and trading stock roll-overs where interest holders exchange their units in a unit trust for shares in a company;
- broaden beyond consolidated groups the existing revenue asset and trading stock roll-overs that apply for an exchange of shares in a company for shares in another company;
- ensure integrity by requiring that the roll-overs only be available where the replacement asset is of the same tax character as the original asset; and
- resolve technical defects relating to certain restructure roll-overs.
Following public consultation on the policy design of these changes, the Government has released an exposure draft of legislation and a draft explanatory memorandum for public consultation on these changes.
The closing date for submissions is Friday 9 November 2012.