Current Issues in M&A Demergers

TTI WA Convention 2019 - MA and demergers.pdf (243 kb)

27 August 2019

At The Tax Institute's 52nd WA State Convention, Greenwoods Director Cameron Blackwood presented a paper discussing current issues in M&A demergers. The paper was co-authored by Cameron, fellow Director Richard Hendriks, and Senior Associate Michael Carroll.

The paper focusses on current tax issues faced by taxpayers participating in certain public markets M&A transactions, considering three topical aspects of such transactions:

  1. tax issues associated with demerger transactions in light of recent guidance issued by the Australian Taxation Office regarding the administration of Division 125 (Division 125 or demerger tax relief);
  2. special dividends paid by a target in conjunction with a takeover being included as capital proceeds of the target’s shareholders received by them in respect of their disposal of target shares; and
  3. the allocation of purchase consideration in the context of a takeover of a stapled group.

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Authors

Cameron Blackwood

Partner

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Richard Hendriks

Partner, Head of Corporate and M&A

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Michael Carroll

Senior Associate

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