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CD 29B: Issues to shareholders of rights to subscribe for or sell back shares
or “Rights to buy or sell back company shares aren't counted as dividends”
You could also call this:

“Australian company giving shares in its subsidiary to shareholders may not be taxed as a dividend”

When a company listed on the Australian Stock Exchange (ASX) transfers shares in a subsidiary to its shareholders, it might not count as a dividend. This is only true if the transfer of company value isn’t considered a dividend under [section ED 2B(7)]. In simple terms, if an Australian company gives you shares in another company it owns, you might not have to pay tax on it as if it were a dividend.

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Next up: CD 30: Transfer by unit trust of legal interest after beneficial interest vests

or “Unit trust transfers legal ownership without additional tax on previously taxed dividends”
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Part C Income
Income from equity

CD 29CTransfers to shareholders by ASX-listed Australian company of shares in subsidiary

  1. A transfer of company value is not a dividend to the extent to which it is a transfer of value that is not a dividend under section ED 2B(7) (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary).

Notes
  • Section CD 29C: replaced (with effect on 1 April 2016), on , by section 131(1) (and see section 131(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
  • Section CD 29C: amended, on , by section 92(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CD 29C list of defined terms transfer of company value: inserted, on , by section 92(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CD 29C list of defined terms transfer of value: repealed, on , by section 92(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).