Practice Note No. 115
REPEALED - Notification to Australian Taxation Office of application for approval of a scheme of arrangement that involves a reduction of capital
PRACTICE NOTE No 115
Notification to Australian Taxation Office of application for approval of a scheme of arrangement that involves a reduction of capital
The practice in this Division has been that, where a scheme of arrangement involves a reduction of capital, the Australian Taxation Office should be notified and given the opportunity to express its opinion on the scheme. The existence of the practice was noted by Young J in Re Tantalex Ltd (1986) 8 NSWLR 8.
Since the enactment of the Company Law Review Act 1998 (Cth), the Court’s approval to a reduction of capital is no longer needed. Therefore the principal purpose of notifying the Australian Taxation Office no longer exists.
In response to submissions made by legal and insolvency practitioners, the Court will no longer require the Australian Taxation Office to be notified of an application for approval of a scheme of arrangement involving a reduction of capital. However, in a particular case the Court may direct notification of the Australian Taxation Office, typically on the first occasion when the proceedings for approval come before the Court, under Corporations Law Rule 3.4.
12 October 2000
This Practice Note is available on the Supreme Court’s website: www.lawlink.nsw.gov.au/sc