What do you recommend that UPL should do in order that shareholders can have a clear understanding of the tax consequences of the transaction, and the confidence that the Australian Taxation Office (ATO) agrees with the position? What issues should any such communication cover in particular any outcomes that some shareholders might find surprising?

Please prepare a short memo (maximum two pages) explaining your recommendation to the client, including up to four issues that you would recommend obtaining the ATOs confirmation on, and why these issues are important.

Resources to help you with the task

You should consider the Australian Taxation Offices database of class rulings, in addition to the relevant income tax legislation. The ATO has issued class rulings in 2020 which cover the relevant issues (CR 2020/2 is one example which covers some of the relevant tax issues).