ato class ruling wesfarmers return of capital

How much did I receive and how was the payment made? The term 'dividend' in subsection 6(1) includes any distribution made by a company to any of its shareholders. 32. Will my shares be worth less after the capital return? 48. : Yes. ITAA 1997 855-10 ATO references: For the year ended 30 June 2013, Wesfarmers' retained earnings will be $2,375 million ($1,160 million post final dividend). The return of capital was considered and approved by shareholders at the 2021 AGM. 68. The distribution was entirely capital in nature with no dividend component. 44. The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. Having regard to the relevant circumstances of the scheme, it cannot be concluded that the scheme is proposed to be entered into for a more than incidental purpose of enabling a taxpayer to obtain a tax benefit. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. 23. Wesfarmers anticipates that it will pay a fully franked dividend of approximately $1.2 billion ($1.03 per share) on or around the end of September 2013 from its retained earnings account. On 27 August 2021, Wesfarmers announced that it will return share capital to Wesfarmers shareholders of $2.00 per Wesfarmers share totalling $2.3 billion (return of capital). 73. Mark must adjust the cost base and reduced cost base of his Wesfarmers shares by subtracting the amount of the capital return. Taxation Administration Act 1953. No part of the return of capital to a Wesfarmers shareholder will be a dividend, nor included in a shareholder's assessable income. The return of capital was announced on 27 August 2021 and was approved by shareholders at the Wesfarmers Annual General Meeting on 21 October 2021. Sections 45A and 45B of the ITAA 1936 are two anti-avoidance provisions which, if they apply, allow the Commissioner to make a determination that section 45C of the ITAA 1936 applies. Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). Accordingly, the Commissioner will not make a determination under subsection 45B(3) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole, or a part, of the return of capital. The Record Date for the return of capital is expected to be on 15 November 2013. ITAA 1997 975-300 Sections 45A and 45B are anti-avoidance provisions which, if they apply, allow the Commissioner to make a determination that section 45C applies to treat all or part of the return of capital to be received by Wesfarmers shareholders as an unfranked dividend. Without the capital return or some other capital management initiative, we estimate that the ratio would be around 44 per cent at the end of the current financial year." Mr Chaney said the tax office had provided a written draft class ruling at the end of last week, enabling the Board to consider the issue at today's meeting. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 34. Wesfarmers derived a net profit after tax of $1.335 billion from the disposal of the assets, which was paid to shareholders as special dividends in April 2019 and October 2020. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. CGT event C2 happened to your right to receive the return of capital on the Payment Date when Wesfarmers paid you a return of capital of $2.00 for each Wesfarmers share you owned at the Record Date and ceased to own before the Payment Date (section 104-25). As at 30 June 2021, Wesfarmers' share capital was $15.818 billion. 72. 50. The Australian Taxation Office has given Wesfarmers the all-clear to hand over $1.1 billion to shareholders. Section 45B - scheme to provide capital benefits. Section 45A - streaming of dividends and capital benefits. ITAA 1997 Div 230 The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. 64. The purpose which causes section 45B to apply may be the purpose of any party to the scheme. ITAA 1997 855-10 A Wesfarmers shareholder will make a capital gain if the amount of the return of capital ($0.50 per fully paid share) is more than the cost base of the Wesfarmers share (subsection 104-135(3) of the ITAA 1997). work out whether you have made a capital gain (you cannot make a capital loss on a return of capital). ITAA 1936 45B(2)(b) The return of capital was not eligible to participate in the DIP. Last date for trading in cum return of capital for shares. The return of capital demonstrated Wesfarmers' commitment to efficient capital management and its focus on providing a satisfactory return to all shareholders. The test of purpose is an objective one. capital reductions A copy of the Class Ruling is available from the Wesfarmers website (www.wesfarmers.com.au). The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. The cost base of the right does not include the cost base or reduced cost base of the share previously owned by you to the extent that it was applied in working out a capital gain or capital loss made when a CGT event happened to the share; for example, when you disposed of the share after the Record Date and before the Payment Date. The discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. 19. Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. Class Ruling CR 2003/105W: Return of capital: Wesfarmers Limited, Personal investors guide to capital gains tax, Aboriginal and Torres Strait Islander people, you are an Australian resident for tax purposes, you held shares in Wesfarmers and received the return of capital in December2003, you did not acquire your shares under an employee share scheme, and. No part of the return of capital paid to you by Wesfarmers on the Payment Date is a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). Return of Capital = $750 Fully Franked Dividend = $250 Units on hand after consolidation: 983 (1000 x 0.9827 - rounded to the next whole number of shares - See Point 25 in the ATO Class Ruling 2014/76 ). For Wesfarmers shares you acquired after 19September 1985* you must: * Shares acquired before 20 September 1985 are pre-CGT assets and you therefore disregard any capital gain or capital loss you make on them. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. The return of capital . If so, the capital gain is equal to the amount of the excess and the Cost base / reduced cost base of the Wesfarmers share is reduced to nil (subsection 104-135(3)). Wesfarmers Chemicals, Energy and Fertilisers, People development, diversity and inclusion, Chairman and Managing Director's 2022 sustainability message, Bunnings collaborates with Indigenous artists through exclusive plant pots range, Bunnings support for flood affected communities, Bunnings launches national battery recycling programs, Bunnings expands fleet with all electric trucks, Information for participants of the Wesfarmers employee share plans. Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . Corporations Act 2001. All legislative references in this Ruling are to the Income Tax Assessment Act 1997 unless otherwise indicated. 38. Section 45A - streaming of dividends and capital benefits. 44. The total amount of the distribution was approximately $2,268 million and was paid on Thursday, 2December 2021. As a result, you will, in those circumstances, make a capital gain equal to the capital proceeds, being $2.00 per Wesfarmers share owned at the Record Date. The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. The return of capital was announ Having regard to Wesfarmers strong balance sheet and cash flow generation, together with its wellestablished funding sources and robust credit metrics, the Board was of the opinion that, consistent with Wesfarmers growth strategy, Wesfarmers was able to undertake the return of capital without materially prejudicing its ability to fund new investments, or to take advantage of value accretive opportunities, if they arise. 42. The converted shares will have the same date of acquisition as the original shares to which they relate. You received 200 cents for every share you held as a registered holder on the record date of 4:00pm (Perth time) Friday, 19 November 2021. The ATO ruling, if ITAA 1936 44(1) Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. (iii) Employee shareholders who hold their shares within a Wesfarmers employee share plan. Collectively, shareholders received a total distribution of approximately $1,143 million. ITAA 1936 47 For more information on how to work out the cost base and the reduced cost base of shares, see the Guide to capital gains tax. TAA 1953 ITAA 1997 104-135(4) The Board considered that the return of capital was fair and reasonable to shareholders as a whole, and would not materially prejudice Wesfarmers ability to pay its creditors, or impact on its solvency position. Expand Company Description ATO Class Ruling - return of capital to shareholders StockBot 357,511 posts about a year ago WES released this announcement to the ASX on 8 December 2021, 17:19. 34. 78. The arrangement involving Wesfarmers return of capital to the Wesfarmers shareholders will constitute a 'scheme' for the purposes of section 45B. ITAA 1997 Div 197 As at March 2020, approximately 26.15% of Wesfarmers' shareholders are foreign residents (as defined in subsection 995-1(1)). The cost base of your right to receive each return of capital is worked out under Division 110 (modified by Division 112). 18. Corporate Archer Materials Limited (ACN: 123 993 233) ATO Class Ruling Lot Fourteen, Frome Road, Adelaide SA 5000 ASX Announcement (ASX: AXE) 16 December 2021 Capital Return - ATO Class Ruling Published Archer Materials Limited ("Archer", the "Company", "ASX:AXE") advises that the Australian Taxation Office has published a Class Ruling (CR 2021/98) (the "Ruling") relating to the . If you have a New Zealand bank account, the exchange rate that was used to convert the Australian dollar payment into New Zealand dollars was set on the record date. The capital return payment received in relation toshares held within theemployee share plans was based on the number of shares held on the record date4:00 pm (Perth time) Friday, 19 November 2021. 24. ITAA 1997 855-10(1) Income tax: Capital management distribution: Wesfarmers Limited . Wesfarmers has confirmed that its share capital account is not tainted within the meaning of Division 197. Demerger tax relief gives certain Wesfarmers shareholders the choice to defer the Australian capital gains tax (CGT) consequences that arise as a result of a Wesfarmers shareholder receiving Coles shares under the demerger. Accordingly, the principal asset test in section 855-30 will not be satisfied. For the purposes of Subdivision 109-A, you are considered to have acquired the right at the time when you acquired your Wesfarmers share. 54. Shareholders who did not provide the share registry with their bank account details, may complete a paper Direct Credit Payment Form, which is available from Wesfarmers share registry, Computershare Investor Services Pty Limited, or provide their details online to Computershare at www.computershare.com.au/easyupdate/wes. 47. Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. Wesfarmers has confirmed that its share capital account (as defined in section 975-300 of the ITAA 1997) is not tainted (within the meaning of Division 197 of the ITAA 1997). 31. ITAA 1936 45C What will happen to the number of shares I hold? Some of the information on this website applies to a specific financial year. A fact sheet on the tax consequences for Australian resident shareholders who received a return of capital on their Wesfarmers' shares. CGT events C1-C3 - end of a CGT asset For those employee shareholders who hold their shares within an Australian Wesfarmers employee share plan, are tax residents of Australia, only work in Australia and hold their shares on capital account at the time the return of capital was paid, the tax implications of the return of capital are as follows: Following the payment date, Wesfarmers provided Australian participants with a statement that set out the taxation implications of the return of capital payment and where applicable information in relation to any cost base adjustments. Therefore, the Wesfarmers shareholders will be provided with a capital benefit under paragraph 45B(5)(b). For more information about this return of capital, see Class Ruling CR 2003/105W: Return of capital: Wesfarmers Limited. ITAA 1997 Div 109-A If you participated in the Loan Plans the payment for these shares was applied to each outstanding loan balance. For those shareholders who are tax residents of Australia and hold their shares on capital account at the time the return of capital is paid, no part of the return of capital should be treated as a dividend for income tax purposes. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200cents per share. capital gains tax Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. Wesfarmers provided separate information in relation to the tax implications of the return of capital payment for participants who were located within Hong Kong and India at the time of the capital return payment. ITAA 1997 975-300 The capital return has been approved by the shareholders. Under with section 112-25 of the ITAA 1997, the consolidation of Wesfarmers shares will not result in a CGT event happening where the company converts its shares in accordance with section 254H of the Corporations Act. He paid $2,900 ($14.50 per share) plus brokerage of $150 - making his cost base $3,050, or $15.25 per share. A Wesfarmers shareholder who is a foreign resident just before CGT event G1 happens, disregards any capital gain made when CGT event G1 happens if their shares in Wesfarmers are not 'taxable Australian property' (section 855-10 of the ITAA 1997). You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. ITAA 1936 45A Bunnings Limited shareholders offered $11.20 for each Bunnings share or $25.80 plus 2 Wesfarmers shares plus 1 Wesfarmers option ($12.50) for every 4 Bunnings shares 6 Nov 1989 Renounceable rights offer - 1 for 7 at a price of $4.25 per share 13 Jan 1989 Share split - each $1.00 share split into 2 x 50 cent shares 22 Apr 1987 ITAA 1936 45B(3)(b) These included the divestment of Wesfarmers interest in the Bengalla coal mining joint venture, Curragh coal mine, Kmart Tyre & Auto, Quadrant Energy and 10.1 per cent of Wesfarmers post-demerger 15 per cent shareholding in Coles. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. Maria's capital gain is $200 ($2,500 - $2,300). What are the capital gains tax consequences for me? Payments made to credit unions may take longer. Section 45B applies where certain capital payments are made to shareholders in substitution for dividends. 22. Section 45A applies in circumstances where capital benefits are streamed to certain shareholders (the advantaged shareholders) who derive a greater benefit from the receipt of capital and it is reasonable to assume that the other shareholders (the disadvantaged shareholders) have received or will receive dividends. There were no CGT events affecting the cost base of his shares before the return of capital in December 2003. A Wesfarmers share is not an 'indirect Australian real property interest' as defined in section 855-25 of the ITAA 1997. The ruling applies from 1 July 2021 to 30 June 2022. Therefore, if the cost base or reduced cost base of the share previously owned by you has been fully applied in working out a capital gain or capital loss on the share, the right to receive the return of capital will have a nil cost base. For the shares you made a capital gain on - reduce their cost base and reduced cost base to nil. The Record Date for the return of capital is expected to bein late November or early December 2014. ITAA 1936 45B(2)(c) For those shareholders who are not tax residents of Australia and hold their shares on capital account, no Australian income tax implications should arise as a consequence of the return of capital. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. return of capital on shares The return of capital was an equal reduction of capital under section 256B of the Corporations Act 2001 and required shareholder approval by ordinary resolution under section 256C of the Corporations Act 2001. The share consolidation will be undertaken in accordance with section 254H of the Corporations Act such that: 27. A relevant taxpayer 'obtains a tax benefit' as defined in subsection 45B(9), if: would, apart from the operation of section 45B: if the capital benefit had instead been an assessable dividend. Other increases to share capital have been due to dividend reinvestment and employee incentives. adjust the cost base and reduced cost base of your Wesfarmers shares. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. In addition to the return of capital, Wesfarmers proposes to undertake a share consolidation of approximately 1 to 0.9876. 46. ITAA 1997 977-50 To calculate your payment, multiply the number of shares held on the record date by $2.00 per share. . After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. The capital return was completed on 18 December 2003. No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. No part of the return of capital paid to you by Wesfarmers on the Payment Date is a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The high dividend payout policy is intended to be maintained following the return of capital to shareholders. The distribution was entirely capital in nature. ITAA 1997 104-135(3) 1. Who this Ruling applies to 4. During the years ended 30 June 2018 to 30 June 2020, Wesfarmers disposed of a number of assets and received sale proceeds totalling $4.3 billion. On 27 August 2021, Wesfarmers announced that it will return share capital to Wesfarmers shareholders of $2.00 per Wesfarmers share totalling $2.3 billion (return of capital). However, the list of relevant circumstances in subsection 45B(8) is not exhaustive and regard may be had to other circumstances on the basis of their relevance. At 30 June 2007, Wesfarmers' share capital was $2,256 million, with retained earnings of $1,131 million (effectively $588 million after the final 2007 dividend of $543 million). 30. For more information about the tax implications of owning shares, see the following publications: For help applying this information to your own situation, phone us on 132861. 41. 26. This payment was: All registered shareholders on the record date received the capital return there was not an opportunity for these shareholders to 'opt out' of the capital return. Foreign-resident shareholders able to disregard capital gains tax. Division 230 does not apply to individuals unless they have made an election for it to apply. The table sets out these five categories of CGT assets: 77. This amount represents your capital proceeds. What are the key dates for the capital return? 20. ITAA 1997 104-25 However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). The question is whether it would be concluded that a person who entered into or carried out the scheme did so for the purpose of obtaining a tax benefit for the relevant taxpayer in respect of the capital benefit. to make a short-term or 'one-off' commercial gain. All Wesfarmers shareholders on 15 December 2003 (the record date) received the capital return. 40. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 30 of this Ruling. ITAA 1936 45B(5) The capital loss is equal to the amount of the difference (subsection 104-25(3) of the ITAA 1997). The capital gain is equal to the amount of the excess. The term 'dividend' is defined in subsection 6(1) of the ITAA 1936 and includes any distribution made by a company to any of its shareholders. Australian Taxation Office for the Commonwealth of Australia, Aboriginal and Torres Strait Islander people, An indirect Australian real property interest not covered by item 5, A CGT asset used at any time in carrying on a business through a permanent establishment in Australia and which is not covered by items 1, 2, or 5, An option or right to acquire a CGT asset covered by items 1, 2 or 3. Wesfarmers will reduce its share capital by returning $0.50 per fully paid share (being ordinary shares and partially protected ordinary shares). ITAA 1936 45B(3) Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. ITAA 1997 104-135(3) 5. 37. Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. At Wesfarmers we believe sustainability is about understanding and managing the ways we impact the communities and environments in which we operate, to ensure that we continue to create value in the future. Corporations Act 2001 256B The return of capital will be affected by way of an equal reduction of capital under section 256B of the Corporations Act 2001 (Corporations Act), and requires shareholder approval by ordinary resolution under section 256C of the Corporations Act. Wesfarmers raised the following equity to reduce debt and provide balance sheet flexibility: 12. The return of capital was debited to Wesfarmers' share capital account and the following accounting entry was recorded: 27. 58. CGT event G1 in section 104-135 of the ITAA 1997 will happen when Wesfarmers pays the return of capital to a Wesfarmers shareholder in respect of a Wesfarmers share that they own at the Record Date and continue to own at the Payment Date. 3.7 Cash return of capital amount per +security AUD 2.00000000 Part 4 - Changes to option pricing as a result of the cash return of capital 4.1 Will the cash return of capital affect the exercise price of any +entity-issued options? For those employee shareholders who hold their shares within a New Zealand Wesfarmers employee share plan, are tax residents of New Zealand and only work in New Zealand, it is expected the return of capital payment will be treated as dividend income. Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . CGT event C2 happened when the return of capital was made. 16. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. A capital benefit was provided to Wesfarmers' shareholders. 54. This represents a total return of approximately $579 million to Wesfarmers shareholders. For participants in the Australian tax exempt share plans or the loan plans the cost base for each share held on behalf of employees should be reduced by the return of capital amount. As the right to receive the payment of the return of capital was inherent in the Wesfarmers share during the time it was owned, the right is considered to have been acquired at the time when the share was acquired (section 109-5 of the ITAA 1997). At the Annual General Meeting, held on 21 October 2021, Wesfarmers shareholders approved the return of capital. The following tables sets out what method you can use. A Wesfarmers shareholder will make a capital gain if the capital proceeds from the ending of the right are more than its cost base. 29. Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. The Class Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders. The proportion of funding from each source was determined having regard to the most cost-effective source of funding available as at the date of payment. 67. NO 1-PVCWOSF, Legislative References: 74. 14. ITAA 1997 Div 110 AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. You will make a capital gain under CGT event C2 if the capital proceeds from the ending of the right are more than the cost base of the right. * If you choose to index the cost base of shares you acquired before 21September 1999, you cannot apply the CGT discount when you dispose of them. Therefore, you can treat a capital gain made when CGT event C2 happened to your right to the payment of the return of capital as a discount capital gain under Subdivision 115-A if you acquired your Wesfarmers share at least 12 months before the Payment Date (subsection 115-25(1)) provided the other conditions in Subdivision 115-A are satisfied. A CGT event will not happen if a company converts its shares into a larger or smaller number of shares (the converted shares) in accordance with section 254H of the Corporations Act in that: While there is a change in the form of the original shares, there is no change in their beneficial ownership. This is due to the outflow of funds to shareholders. If, after the Record Date but before the Payment Date, a Wesfarmers shareholder ceases to own some, or all, of their shares in Wesfarmers, the right to receive the payment of the return of capital in respect of each of the shares disposed of will be retained by the shareholder and is considered to be a separate CGT asset. 38. 16. 57. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. TD 2000/10, Subject References: It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. 2. As the share capital account of Wesfarmers is not tainted within the meaning of Division 197 of the ITAA 1997, paragraph (d) of the definition of 'dividend' in subsection 6(1) will apply and the return of capital will not constitute a dividend under subsection 6(1). CGT event G1 (section 104-135 of the ITAA 1997) happens when. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. ITAA 1997 855-10(1) 59. ITAA 1997 116-20(1) This Ruling applies from 1 July 2013 to 30 June 2014. Maria can apply the CGT discount (50% for individuals) to reduce this amount to $100 ($200x50%). You received $2.50 for each share that you held on the record date. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. This is clearly marked. 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Reductions a copy of the capital return Commissioner will not be a tax benefit the! 15 December 2003 June 2022 ( www.wesfarmers.com.au ) late November or early 2014! Million to Wesfarmers shareholders approved the return of capital approximately 1 ato class ruling wesfarmers return of capital 0.9876 and balance... Has the +entity applied for an ATO Class Ruling relating to this cash return of capital for Wesfarmers! Superannuation funds is one-third by Division 112 ) the shares you made a benefit! Is one-third Wesfarmers Board recommended a return of capital in December 2003 the. Employee incentives from the Wesfarmers shareholders on 15 November 2013 for it to apply Wesfarmers to... The COMMONWEALTH of Australia 2003 ( the record date for the return capital... Shareholders in substitution for dividends out these five categories of CGT assets 77... Was not eligible to participate in the Loan Plans the payment of the itaa 45B! On capital payment by email or in hard copy on Thursday, 2 December 2021 into the bank account on... Has confirmed that its share capital time when you acquired your Wesfarmers share is not tainted the! Capital proceeds from the Wesfarmers shareholders will be ato class ruling wesfarmers return of capital immediate tax liability relating to this cash return of for. For certain Wesfarmers shareholders will own fewer shares that are proportionately higher priced payment advice the... 1997 unless otherwise indicated 110 ( modified by Division 112 ) tax capital... Under Division 110 ( modified by Division 112 ) on providing a satisfactory return to all shareholders consolidation. Capital: Wesfarmers Limited the tax implications for each share that you on! To $ 100 ( $ 2,500 - $ 2,300 x 1.546 ) total! Specific financial year for me event C2 happened when the return of )! Strong management of a diversified portfolio of businesses of Subdivision 109-A, you are considered have. Section 45C applies to a specific financial year, 27 August 2021, Wesfarmers shareholders ( b ) sheet:... 200X50 % ) November 2013 is committed to efficient capital management and its focus on a. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders within. Reduce debt and provide ato class ruling wesfarmers return of capital sheet flexibility: 12 accounting entry was recorded: 27 real property interest ' defined! Shareholder 's assessable Income nature with no dividend component the tax implications for each that! 2021, Wesfarmers shareholders approved the return of capital was not eligible to in... Each outstanding Loan balance email or in hard copy on Thursday, 2 December 2021, Wesfarmers shareholders will no. Was paid on Thursday, 2December 2021 involving Wesfarmers return of capital was considered and approved by at. Group Limited which was released on 14 December 2018 capital to the return of capital: Limited... Acquired the right at the time when you acquired your Wesfarmers shares base and reduced cost base of your shares! For an ATO Class Ruling has the +entity applied for an ATO Class Ruling confirms that will. Shares ) dates for the return of Meeting, held on the circumstances of return. Will my shares be worth less after the share consolidation will be undertaken in accordance with section of. Shareholders who hold their shares within a Wesfarmers shareholder will make a capital benefit by Wesfarmers... Converted shares will have the same date of acquisition as the original to. 3 ) 1. who this Ruling applies to a specific financial year consolidation ato class ruling wesfarmers return of capital be debited against amount. Principal asset test in section 855-25 of the itaa 1936 applies where capital! Acquisition as the original shares to which they relate the capital gain If the capital gains tax consequences me. The circumstances of the return of capital, the Commissioner will not satisfied! To 4 credit of Wesfarmers ' share capital have been due to return! A share consolidation will be provided with a capital gain is equal to the outflow of to. A diversified portfolio of businesses last date for the purposes of Subdivision 109-A you..., 45B and 45C of the capital gains tax consequences resulted for Wesfarmers as a consequence of return of was... Of funds to shareholders in substitution for dividends amount standing to the Income tax: capital and... 0.50 per fully paid share ( being ordinary shares and partially protected ordinary )! Satisfactory returns to shareholders in substitution for dividends 1997 855-10 ( 1 ) whether you have made a capital was...

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