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Tax Update: Taxing Share Buybacks and RPS Redemptions
When is a share capital account not a share capital account for tax purposes? Why, when it is an equity account, of course! So said the Full Federal Court recently in Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v FCT in the context of share buybacks. And on this topic, it is worth revisiting some basics on the buyback of redeemable preference shares (RPS).