Just wondering if anyone has any experience of Section 586 which deals with CGT for company amalgamations and the treatment of certain transactions as share for share exchanges. I’m particularly interested in the case where there is a subsidiary company involved.
What happened was, a small company I had shares in (Company A) was sold to another company (B) which is a wholly owned subsidiary of Company C, and in return I received shares in Company C. Revenue are saying that because I did not receive shares in Company B (really just a holding company established to purchase Company A) that I cannot treat the transfer of my shares to company B in exchange for the receipt of shares in Company C as a share for share exchange. Interestingly, a couple of texts on taxation state that Revenue do accept this practice.
If anyone can shine some light on this, or has an example where this exchange has been accepted, I would be very grateful for the information. You can DM me if you prefer.
What happened was, a small company I had shares in (Company A) was sold to another company (B) which is a wholly owned subsidiary of Company C, and in return I received shares in Company C. Revenue are saying that because I did not receive shares in Company B (really just a holding company established to purchase Company A) that I cannot treat the transfer of my shares to company B in exchange for the receipt of shares in Company C as a share for share exchange. Interestingly, a couple of texts on taxation state that Revenue do accept this practice.
If anyone can shine some light on this, or has an example where this exchange has been accepted, I would be very grateful for the information. You can DM me if you prefer.