I am doing some research in relation to off-market share buyback of non-listed companies.
I read PS LA2007/9 and TD2004/22 but information regarding market value is related to listed companies. Could you please direct me to where I can find relevant information for non-listed companies?
You need to get an accountant to value the shares - based on the company's sustainable earnings.
You need to get an accountant to value the shares - based on the company's sustainable earnings.
@Bruce4Tax Thank you!
Can I clarify if the company needs to engage an accountant to value the shares or are you referring to each taxpayer engaging an accountant as part of CGT calculation?
I am doing this research from the company's position and I was reading below from ATO's site, in particular, "In this situation, the company may tell you the market value or obtain a class ruling from us."
Hypothetically if the buy-back price is going to be less than the market value, I was not sure whether the company is obliged to advise the "market value" to the shareholders, and if so how the market value can be determined, which I believe your answered to get a valuation.
Company that is not a listed public company
If the buy-back price is equal to or more than this market value, your capital proceeds are the amount paid, excluding any dividend paid as part of the buy-back.
If the buy-back price is less than this market value, your capital proceeds are:
In this situation, the company may tell you the market value or obtain a class ruling from us.
There are some further adjustments in circumstances where the participating shareholder is itself a company.
Where a share buy-back affects a large shareholder group, we may publish guidance on events affecting shareholders.
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
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