Dividend access share

Sladen Snippet – Full Federal Court confirms Dividend Access Share arrangement did not affect access to CGT small business concessions

Sladen Snippet – Full Federal Court confirms Dividend Access Share arrangement did not affect access to CGT small business concessions

The Full Federal Court dismissed the Commissioner’s appeal in Commissioner of Taxation v Devuba Pty Ltd [2015] FCAFC 168, confirming the earlier Administrative Appeals Tribunal (AAT) decision that the existence of a dividend access share (DAS) arrangement did not affect the taxpayer’s ability to apply the capital gains tax (CGT) small business concessions to a capital gain arising from the disposal of ordinary shares in the applicant company.

The primary issue considered in that case was whether the existence of the DAS caused the taxpayer to fail to meet the small business participation percentage (SBPP) of 90%.