Shareholders in companies involved in corporate mergers and acquisitions will find it easier to defer tax payments under changes proposed by the federal government.
The Australian Financial Review reports that shareholders in target companies, particularly managed investment schemes (MIS), who are paid in shares or units by the acquiring company through a scrip-for-scrip takeover, will be spared from having to pay capital gains tax when the deal occurs. Instead, they will be allowed to defer CGT liability to when the shares are sold.
The planned law changes will benefit retail investors and large institutional investors.
MIS would also find it easier to consolidate and restructure, experts said.
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