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ARTICLE · 23 OCTOBER 2008

Dividend Access Shares - Have The Rules Changed?

Cooper Grace Ward
Cooper Grace Ward
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Cooper Grace Ward

Cooper Grace Ward

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Dividend access shares are used by many clients for a variety of reasons, including asset protection or estate or tax planning.

AustraliaTax
Greg Cahill
Greg Cahill
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Dividend access shares are used by many clients for a variety of reasons, including asset protection or estate or tax planning.

A significant issue which is often of concern is whether the issue of a dividend access share and the subsequent declaration of dividends will trigger a share value shift.

Cooper Grace Ward obtained a private binding ruling several years ago in which the ATO indicated that the share value shifting provision should not apply to the issue of dividend access shares or the declaration of dividends on those shares (PBR 66948).

It is also necessary to consider the dividend streaming provision in sub-division 204-D of the 1997 Tax Act and the dividend stripping and dividend streaming provisions in Part IVA (Section 177E and 177EA).

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