Notice of Rulings, Notice of Addenda, Notice of Withdrawal

NOTICE OF RULINGS

Ruling Number

Subject

Brief Description

CR 2014/81

Income tax:  demerger of OMI Holdings Limited by Donaco International Limited

The Ruling sets out the Commissioner’s position on the holders of ordinary shares in Donaco International Limited (Donaco) who:

(a)    were listed on the share register of Donaco as at the Record Date (12 September 2014) for the demerger of shares in OMI Holdings Limited (OMI);

(b)    on the Record Date, held their shares in Donaco as neither revenue assets (as defined in section 977-50 of the Income Tax Assessment Act 1997 (ITAA 1997)) nor as trading stock (as defined in subsection 995-1(1) of the ITAA 1997) that is, broadly on capital account;

(c)    were either

(i)      a ‘resident of Australia’ as defined in subsection 6(1) of the Income Tax Assessment Act 1936 on the Record Date; or

(ii)    a foreign resident with non-portfolio interests in Donaco as at the Record Date;

(d)    a foreign resident whose shares in Donaco, or right to receive something of value in respect of shares in Donaco, they owned as at the Record Date, are not taxable Australian property (as that term is defined in section 855-15 of the ITAA 1997);

(e)    are not subject to the taxation of financial arrangements rules in Division 230 of the ITAA 1997 in relation to gains and losses on their Donaco shares.

(Note – Division 230 will generally not apply to individuals, unless they have made an election for it to apply to them.)

The Ruling applies from 1 July 2014 to 30 June 2015..

CR 2014/82

Income tax:  Dell Australia Pty Limited Restricted Stock Units

The Ruling sets out the Commissioner’s position on employees of Dell Australia Pty Limited who:

• held a restricted stock unit (RSU) acquired on or after 1 July 2009 issued under the Amended and Restated 2002 Long-Term Incentive Plan and covered by a Dell Inc. Stock Unit Agreement which was amended and restated as a Dell Inc. Deferred Cash Replacement Agreement.
• are residents of Australia within the meaning of subsection 6(1) of the Income Tax Assessment Act 1936.

are not temporary residents within the meaning of that expression in subsection 995-1(1) of the Income Tax Assessment Act 1997.

The Ruling applies from 1 January 2013.

CR 2014/83

Income tax:  Bendigo and Adelaide Bank Limited – allotment of convertible preference shares

The Ruling sets out the Commissioner’s position on subscribers of Convertible Preference Shares 2 (CPS2) in Bendigo and Adelaide Bank Limited who:

• are Australian residents (within the meaning of subsection 6(1) of the Income Tax Assessment Act 1936)
• hold their CPS2 on capital account, and
• are not subject to the taxation of financial arrangement rules in Division 230 of the Income Tax Assessment Act 1997 on financial arrangements under the scheme.

(Note - Division 230 will generally not apply to the financial arrangements of individuals, unless they have made an election for those rules to apply to them.).

The Ruling applies from 10 October 2014 to 30 June 2023.

CR 2014/84

Income tax:  The Imperial Tobacco Australia Limited Voluntary Early Retirement Scheme 2014 (VRS 2014)

The Ruling sets out the Commissioner’s position on all employees of Imperial Tobacco Australia Limited who receive a payment under the scheme.

The Ruling applies from 9 October 2014 to 30 June 2015.

NOTICE OF ADDENDA

Ruling Number

Subject

Brief Description

NOTICE OF WITHDRAWAL

Ruling Number

Subject

Brief Description