ATO raises tax cloud over Toll spin-off

<p>Toll Holdings changed its advice to shareholders on the tax implications of its restructure yesterday (Wednesday, May 23).</p> <p>Though its Scheme Book on the Asciano spin-off had noted its receipt of a &#8220favourable Private Binding Ruling&#8221 from the Australian Taxation Office (ATO) and was applying for a &#8220class ruling&#8221, the ATO had now said it was unable to issue a class ruling &#8220and has raised concerns that shareholders may be subject to different tax consequences than those set out in the Scheme Book&#8221, Toll said.</p> <p>&#8220The company remains of the view that the sections in the Scheme Book dealing wit the implications for shareholders are materially accurate,&#8221 Toll said.</p> <p>Negotiations with the ATO continue.</p> <p>The ATO website states: &#8220If you rely on a private ruling you have received (that is, you apply the ruling to your tax affairs), the [Tax&#93 Commissioner must administer the law in the way set out in the ruling, unless the ruling is found to be incorrect and applying the law correctly would lead to a better outcome for you.&#8221</p> <p><em>Lloyd’s List DCN</em> was awaiting clarification from Toll at deadline.</p> <p>Meetings to approve the restructure will be held on Monday in Melbourne.</p> <br />