Key facts
- ATO issued a class ruling for FireFly's in-specie distribution of Bellavista shares.
- The ruling confirms the distribution is a capital return for shareholders.
- The distribution will not be treated as a dividend or assessable income.
The Australian Taxation Office (ATO) has released a Class Ruling confirming the tax treatment for shareholders receiving an in-specie distribution of Bellavista shares from FireFly. The ruling specifically addresses shareholders who held FireFly shares on capital account. It clarifies that this distribution will be treated as a capital return, and therefore, will not be considered a dividend or assessable income for tax purposes. This provides certainty for investors regarding the tax implications of the share distribution.