ATO confirms tax terms for Alurion Resources spin-off

• The Australian Taxation Office confirmed demerger roll-over relief for eligible investors.
• Capital reductions total $0.1829 per share with no assessable dividend component.
• The ruling establishes tax cost base allocations following the completed corporate separation.

Brazilian Rare Earths (ASX:BRE) secured a class ruling from the Australian Taxation Office confirming tax relief for the demerger of Alurion Resources (ASX:ALU).

The binding tax decision provides regulatory clarity after investors received distributed spin-off shares following the July 22 record date.

The company stated that the ruling ensures eligible investors can defer capital gains tax liabilities arising from the corporate separation.

Under the ruling, tax cost bases are split 89.2% to parent shares and 10.8% to newly received spin-off equity.

The tax ruling finalised the structural spin-off process while providing certainty for long-term equity holders.

Following the announcement, the Brazilian Rare Earths share price was down at $3.49.

The mining explorer focused on developing high-grade rare earth deposits in the Rocha da Rocha province of Brazil.