In Search of the True Demerger: Boundary Issues with Division 125 presentation

Published on 22 Aug 03 by NATIONAL EVENTS, TAXATION INSTITUTE OF AUSTRALIA

This presentation examines some of the definitional issues surrounding Division 125, including:
- 20% ownership interest requirement for demerger subsidiary and 'ultimate' head entity in defining demerger group
- methods of demerger restructuring under paragraph 125-70(1)(b)
- Subsection 125-70(2) proportionality requirements
- requirements of paragraphs 45B(8)(a) and (8) (i)
- tax treatment of a non-conforming demerger. Is Division 125 an exclusive demerger code?
- insights into the ATO's administration of Division 125 and section 45B as it relates to demergers.

Author profiles

Martin Keating

Martin, in the early part of his career at the Australian Taxation Office, served as an auditor, then an Appeals officer, finishing his time at Cannington Office as Head of Appeals. Soon after, he joined the Tax Counsel Network, from which he retired in 1992. In these capacities he has assisted officers at interviews and otherwise on countless occasions, including dealings ranging from those with individuals through to those involving the most sophisticated professional advisers. Since 2013 Martin has been employed as a Director at PwC, in an occasional capacity. - Current at 17 June 2019

More by Martin KEATING

• Facing the dragon in his lair paper - 13-March-2013
• Part IVA paper - 12-August-2010
• Tax Office thinking on some topical and emerging CGT issues paper - 24-August-2006
• In Search of the True Demerger: Boundary Issues with Division 125 seminar paper - 22-August-2003
• Apportionment issues, including business commencement and cessation seminar paper - 12-June-2003
• Contractors - 22-May-1997

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Gordon Thring CTA

Gordon is a Partner in the Corporate Tax practice of Deloitte. He has over 20 years experience in mining and energy, financial services and property sectors. He was extensively involved in the consultation arrangements regarding the introduction of Division 125 and the amendments to s45B to accommodate demerger relief. - Current at 19 March 2009

More by Gordon THRING

• Split central management and control and dual residency - 01-July-2020
• In Search of the True Demerger: Boundary Issues with Division 125 seminar paper - 22-August-2003
• Some Issues with Demerger Relief - 01-October-2002
• Tax relief for demergers - 12-September-2002
• Demergers and corporate reconstructions - 29-August-2002
• Workshop two: consolidations - losses - 23-February-2001
• TR 97/D18: Steele's case - 01-February-1998

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