What this ruling covers
The Australian Taxation Office has issued class ruling CR 2026/67, which sets out the tax treatment for shareholders of Australian Strategic Materials Limited (ASM) whose shares were acquired by a subsidiary of Energy Fuels Inc. (EFI) on 28 August 2026.
What shareholders received
Under the acquisition, each ASM share was exchanged for:
- $0.13 cash, plus
- 0.053 of an EFI common share or 0.053 of a CHESS Depositary Interest (CDI)
Partial scrip for scrip roll-over
Because part of the consideration was shares rather than cash only, the ruling explains that eligible shareholders may be able to choose a partial scrip for scrip roll-over. This roll-over defers the capital gains tax liability on the share or CDI portion of the proceeds received.
The $0.13 cash component per ASM share is treated as ineligible proceeds. The ruling states that tax on the cash portion cannot be deferred, regardless of whether the roll-over is chosen.
Which shareholders the ruling applies to
The ruling applies to shareholders who:
- held ASM shares on capital account, and
- were registered on the ASM share register on 21 August 2026 (the record date)
Foreign resident shareholders
The ruling states that foreign resident shareholders generally cannot access the roll-over unless the EFI shares or CDIs they received were taxable Australian property.
Key actions
- Shareholders who held ASM shares on the record date of 21 August 2026 and received EFI shares or CDIs can talk to an accountant or tax agent about whether to choose the partial scrip for scrip roll-over on a 2025-26 or 2026-27 tax return.
- Note that the $0.13 cash component per share is treated as ineligible proceeds - tax on that portion cannot be deferred regardless of whether the roll-over is chosen.
- Foreign resident shareholders can check with a tax adviser whether their EFI shares or CDIs qualify as taxable Australian property before assuming the roll-over is available to them.
- The full ruling is available at https://www.ato.gov.au/law/view/document?docid=CLR/CR202667/NAT/ATO/00001 - the PDF version is the authorised version.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.