Following public consultation earlier this year on the exposure draft for a package of capital gains tax (CGT) measures, the Australian government has developed a further draft of legislation to address issues raised in relation to the share and interest share facilities measure.
In May 2010, the then Australian Assistant Treasurer announced that the government would broaden the range of capital gains tax roll‑overs where entities can use a share or interest sale facility for foreign residents in a restructure. This was to be part of a package of CGT measures to make it easier for businesses to restructure.
It was proposed that the government would extend the CGT roll-over for the conversion of a body to an incorporated company; broaden the range of CGT roll‑overs where entities can use a share or interest sale facility for foreign residents in a restructure; and allow CGT demerger relief for demerger groups that include corporations sole or complying superannuation entities that currently cannot access the relief.
"These changes will allow more businesses to restructure and are in line with the government's commitment to promoting flexibility for business," then Australian Assistant Treasurer Nick Sherry said at the time.
Following public consultation in May 2011 on the exposure draft for the package of measures, the government has developed a further draft of legislation to address issues raised in relation to the share and interest share facilities measure. A revised exposure draft of the legislation and explanatory material for the share and interest sale facilities amendments has been released as part of the public consultation process to provide interested parties with an opportunity to comment.
As no issues were identified in relation to the remainder of the package of measures, no further consultation will be conducted for the remaining measures.
Interested parties are invited to comment on the exposure draft package. The closing date for submissions is October 4, 2011.
.Tags: tax | business | mergers and acquisitions (M&A) | legislation | capital gains tax (CGT) | Australia | interest
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