I’m after clarification regarding the application of DIV 615. Is DIV615 rollover concession available where shares held in the company which is to be reorganised (held 50%/50% between 2 individuals) are to be transferred to 2 companies, with each interposed company owning 50% shareholding in the reorganised company (each company wholly owned by one individual – 2 x sole director/shareholder companies)?
From my research, it looks like DIV615 can only apply where the holding company has more than one shareholder in each company, and the rollover is to one entity, eg: the transfer of shares held in the reorganised company to the interposed company needs to be in exchange for the issuing of shares in the interposed company in the same proportion as shareholding in the reorganised company. This transfers ownership to a corporate entity with the same individuals holdings the shares, with economic ownership being the same proportion as their economic ownership was in the reorganised company.
Can economic ownership be transferred from 2 individuals to 2 respective wholly owned companies?
Thanks
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