ITAA 1936 45C(1) 57. ITAA 1936 45A If Maria chooses the discount method, she calculates her capital gain by subtracting her cost base from the amount she received in the return of capital. CGT event C2 happened when the return of capital was made. 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. 22. You have made a capital gain if your cost base per share on the record date (15December 2003) was less than the amount you received for each share ($2.50). Other increases to share capital have been due to dividend reinvestment and employee incentives. 75. Also: No capital gain or capital loss should arise in respect to a share acquired on or before 19September 1985. 57. 31. 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 1936 6(1) Wesfarmers is an Australian-resident company listed on the Australian Securities Exchange since 1984. 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. adjust the cost base and reduced cost base of your Wesfarmers shares. 10. If the return of capital is approved by shareholders at the 2013 . 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). If any of your shares had a cost base of exactly $2.50, their new cost base and reduced cost base will be nil. Wesfarmers will reduce its share capital by returning $0.50 per fully paid share (being ordinary shares and partially protected ordinary shares). 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. This Ruling applies from 1 July 2013 to 30 June 2014. Who this Ruling applies to 4. 24. Details of this re turn of capital are set out in paragraphs 14 to 46 of this Ruling. The capital loss is equal to the amount of the difference (subsection 104-25(3)). In addition to the return of capital, Wesfarmers proposes to undertake a share consolidation of approximately 1 to 0.9876. 5. Accordingly, the principal asset test in section 855-30 will not be satisfied. 35. 43. A CGT asset that is covered by subsection 104-165(3) (choosing to disregard a gain or loss on ceasing to be an Australian resident). 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. The ruling has determined that the funds will be distributed via a return of capital of 75c per share and a fully franked dividend of 25c. As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. 18. 21. However, paragraph (d) of the definition of dividend excludes a distribution from the meaning of dividend if the amount of the distribution is debited against an amount standing to the credit of the company's share capital account. 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 effect of such a determination is that all or part of the return of capital received by Wesfarmers shareholders is treated as an unfranked dividend paid by Wesfarmers out of profits. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. 8. Some of the information on this website applies to a specific financial year. Our diverse business operations cover: home improvement and outdoor living; apparel and general merchandise; office supplies;health, beauty and wellbeing; and an Industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products. How much did I receive and how was the payment made? 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. 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. A Wesfarmers shareholder who is a foreign resident just before CGT event C2 happens, disregards any capital gain or capital loss made when CGT event C2 happens if their right to the return of capital is not 'taxable Australian property' (section 855-10 of the ITAA 1997). 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 19. Income tax: Capital management distribution: Wesfarmers Limited . 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. 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). The distribution comprised a return of capital of 75 cents per share and a fully-franked dividend of 25 cents per share. capital reductions The capital gain will be a discount capital gain for shareholders that are an individual, trust or complying superannuation fund and acquired their shares at least 12 months before the payment date. ITAA 1997 104-25 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). Recording the capital gain on the tax return. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. However paragraph (d) of the definition of dividend specifically excludes a distribution from the meaning of 'dividend' if the amount of the distribution is debited against an amount standing to the credit of the company's share capital account. A maximum of approximately 9.57% of Wesfarmers shares are pre-CGT assets. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. Wesfarmers operates a diverse business which covers home improvement, office supplies, department stores and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products. ITAA 1936 45B(2)(a) ITAA 1997 Subdiv 115-A CGT event G1 (section 104-135 of the ITAA 1997) happens when. ITAA 1997 Div 197 16. Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . 40. 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. 8. ITAA 1997 Div 112 Eligible shareholders received 1 COL share for each WES share owned. ITAA 1997 Div 230 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. The discount factor for resident individuals is one-half. 65. Accordingly, if the Wesfarmers share was acquired by the Wesfarmers shareholder at least 12 months before the return of capital was paid, a capital gain from CGT event C2 happening on the ending of the corresponding right may qualify as a discount capital gain under subsection 115-25(1) of the ITAA 1997, provided the other conditions in Division 115 of the ITAA 1997 are satisfied. The Commissioner will not make a determination under either There was no share consolidation in relation to the capital return. Maria's capital gain is $200 ($2,500 - $2,300). Will my shares be worth less after the capital return? 14 December 2018 Demerger of Coles Group Limited - ATO Class Ruling The Australian Commissioner of Taxation has today issued Class Ruling CR 2018/59 (Class Ruling) covering the Australian income tax implications of the demerger of Coles Group Limited (Coles) for shareholders of Wesfarmers Limited (Wesfarmers).The Class Ruling confirms the availability of demerger tax relief for certain . The Commissioner will not make a determination under section 45A or 45B that section 45C applies to the return of capital. 22. 59. 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. A copy of the Class Ruling is available from the Wesfarmers website (www.wesfarmers.com.au). In particular: 26. If the scheme is not carried out as described, this Ruling cannot be relied upon. 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. 71. Some of the information on this website applies to a specific financial year. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. 61. ITAA 1997 975-300 The return of capital will be paid equally to each holder of a Wesfarmers share (being ordinary shares and partially protected ordinary shares) who is registered on the Wesfarmers share register on the Record Date. The capital return was $2.50 per share. 47. Payments made to credit unions may take longer. 3. 52. A Wesfarmers shareholder who is a foreign resident or the trustee of a foreign-resident trust for capital gains tax (CGT) purposes, and received the return of capital, can disregard any capital gain made if CGT event G1 happened or disregard any capital gain or capital loss if CGT event C2 happened under section 855-10, provided also that your Wesfarmers share or your right to receive the return of capital on the Wesfarmers shares: 15. 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). Non-resident shareholders should seek specific advice in relation to the tax consequences arising from the return of capital under the laws of their country of residence. ITAA 1997 104-135(3) Wesfarmers has advised that, at the time CGT event G1 happens for any foreign resident Wesfarmers shareholder who is entitled to the return of capital, a Wesfarmers share will not be an indirect Australian real property interest (as defined in section 855-25 of the ITAA 1997). Wesfarmers' return of capital will be recorded as a debit to the share capital account and Wesfarmers shareholders will receive a distribution of share capital to the value of $0.50 per share. NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . 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. ITAA 1936 45B(3)(b) 39. The Class Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders. 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 following tables sets out what method you can use. If the return of capital ($0.50 per fully paid share) is not more than the cost base of the Wesfarmers share at the Payment Date, the cost base and reduced cost base of the share will be reduced (but not below nil) by the amount of the return of capital (subsection 104-135(4) of the ITAA 1997). How did the capital return work and what was the effect on the company? The new cost base for his share parcel is $2,550 ($3,050 - $500), or $12.75 per share. 10. Wesfarmers credited $12,733 million to its share capital account on the issue of Wesfarmers ordinary shares and partially protected ordinary shares to Coles Group shareholders in part payment for the acquisition of all the issued shares in Coles Group. Section 45B - schemes to provide capital benefits. 13. 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. ITAA 1997 855-10(1) ITAA 1997 104-25(3) Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. CGT event C2 (section 104-25 of the ITAA 1997) will happen when the return of capital is paid. 36. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). according to an ATO ruling. It is anticipated that shareholder approval will be sought at the AGM scheduled for 7 November 2013. 34. This is clearly marked. The return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. The capital return was completed on 18December 2003. ITAA 1997 104-135(4) The uplift factor is worked out by dividing 123.4 by the consumer price index for the December quarter of 1986 (79.8) and is 1.546 (rounded to three decimal places). ITAA 1936 45B(3) The Class The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). In November 2007, Coles Group Ltd (Coles Group) was acquired pursuant to a scheme of arrangement. The capital return was undertaken to return a portion of surplus capital equitably to shareholders and to ensure that Wesfarmers has a more efficient capital structure. The table sets out these five categories of CGT assets: 77. The ruling applies from 1 July 2021 to 30 June 2022. The Payment Date is anticipated to be in mid to late December 2014. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. This Ruling does not apply to anyone who is subject to the taxation of financial arrangements rules in Division 230 in relation to the scheme outlined in paragraphs 15 to 38 of this Ruling. Wesfarmers Ltd. published this content on 08 December 2021 and is solely responsible for the information contained therein. Taxation Administration Act 1953. The method you use to work out the amount to include in your item 17 calculations depends on when you acquired the shares. The last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. The arrangement involving Wesfarmers return of capital to the Wesfarmers shareholders will constitute a 'scheme' for the purposes of section 45B. The return of capital was made possible by the Wesfarmers Groups continued strong cash flow generation and the receipt of approximately $4.3 billion in proceeds from the sales of a number of assets during FY2018 to FY2020. Since 2009, the dividend payout of Wesfarmers has been as follows: 14. CGT event G1 happened on the Payment Date when Wesfarmers paid you the return of capital of $2.00 for each Wesfarmers share you owned at the Record Date and continued to own at the Payment Date (section 104-135). 14. NO 1-4UM8A44, Related Rulings/Determinations: Therefore, a Wesfarmers shareholder who is a foreign resident or the trustee of a foreign-resident trust for CGT purposes, and who received the return of capital, can disregard any capital gain made if CGT event G1 happened or disregard any capital gain or capital loss if CGT event C2 happened, provided also that your Wesfarmers share or your right to receive the return of capital on the Wesfarmers shares: Did I have the choice to participate in the capital return? 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 share consolidation is conditional upon the approval by shareholders of an ordinary resolution. 'Share capital account' is defined in section 975-300 of the ITAA 1997 as an account which the company keeps of its share capital, or any other account created after 1 July 1998 where the first amount credited to the account was an amount of share capital. CGT event G1 happened when Wesfarmers made the return of capital to you in respect of Wesfarmers shares you owned at the Record Date and continued to own at the Payment Date (section 104-135). Components of the capital return The capital return was $2.50 per share. 41. ITAA 1997 855-30 ITAA 1997 977-50 Wesfarmers Limited (WES) - Demerger . . 10. The return of capital . 4 September 2013. Please find below some information and frequently asked questions in relation to the 2021capital return. ITAA 1997 116-20(1) 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). If the amount of the return of capital of $2.00 per Wesfarmers share is not more than the cost base of your Wesfarmers share, the Cost base / reduced cost base of the share are reduced (but not below nil) by the amount of the return of capital (subsection 104-135(4)). Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. ITAA 1936 45C The test of purpose is an objective one. The total amount of the distribution was approximately $2,268 million and was paid on Thursday, 2December 2021. ATO references: 40. The term 'share capital account' is defined in section 975-300 as an account which the company keeps of its share capital, or any other account created on or after 1 July 1998 where the first amount credited to the account was an amount of share capital. ITAA 1997 855-20 63. ITAA 1997 115-25(1) The relevant provisions dealt with in this Ruling are: All subsequent legislative references in this Ruling are to the ITAA 1936, unless otherwise stated. Unless the amount of the distribution exceeds the cost base of the shares, there will only be a cost base reduction under CGT event G1 (section 104-135 of the ITAA 1997). 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. 30. 22. ITAA 1997 995-1(1) Ruling Return of capital is not a dividend 7. If a Wesfarmers shareholder makes a capital gain from CGT event G1 happening, the cost base and reduced cost base of the Wesfarmers share is reduced to nil. TAA 1953 What will happen to the number of shares I hold? Shares may have traded at a lower price from the ex return of capital date than they otherwise would have done had the return of capital not occurred. 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. 60. 37. To calculate your payment, multiply the number of shares held on the record date by $2.00 per share. 58. 35. ITAA 1936 47 She paid $2,200 ($2.20 per share) plus brokerage of $100 - making her cost base $2,300. 25. Create your myGov account and link it to the ATO, Help and support to lodge your tax return, Occupation and industry specific income and work-related expenses, Residential rental properties and holiday homes, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Wesfarmers Group Limited (Wesfarmers) return of capital. The return of capital will be paid equally to each holder of a Wesfarmers share who is registered on the Wesfarmers share register on the Record Date. ITAA 1997 855-10 Following the payment of the special dividends, Wesfarmers determined that $2.3 billion of the remaining balance of the proceeds from the asset disposals of approximately $2.925 billion was surplus to its capital requirements. Wesfarmers has obtained a Class Ruling CR 20from the ATO which governs the Australian tax21/87 treatment of the return of capital to Wesfarmers shareholders who hold their shares on capital account. The return of capital was in addition to the interim dividend of 88 cents per Wesfarmers share paid on 31 March 2021 and a final dividend of 90 cents per share for the year ended 30 June 2021 paid by Wesfarmers on 7 October 2021. the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. 46. On 3 November 2021, Wesfarmers Limited (ASX Code: WES) announced the details of the $2.00 capital return. Section 45A - streaming of dividends and capital benefits. CGT events C1-C3 - end of a CGT asset 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 . Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. How can I calculate my return of capital payment and when will I receive this payment? 67. 3. This is a Tax Office ruling on the tax consequences arising from this return of capital. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. All Wesfarmers shareholders on 15 December 2003 (the record date) received the capital return. The record date for the capital return payment was 4:00pm(Perth time) on Friday, 19 November 2021. A Wesfarmers shareholder cannot make a capital loss from CGT event G1 happening (subsection 104-135(3) of the ITAA 1997). Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . It states that a person is provided with a capital benefit if: 52. 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. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . 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. 55. A capital benefit was provided to Wesfarmers' shareholders. ITAA 1936 45B(2)(c) 66. Australian Taxation Office for the Commonwealth of Australia. 42. 60. ITAA 1997 104-135 This publication (excluding appendix) is a public ruling for the purposes of the Taxation Administration Act 1953. 44. ITAA 1997 115-25(1) 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). Make sure you have the information for the right year before making decisions based on that information. 13. 19. No part of the return of capital to a Wesfarmers shareholder will be a dividend, nor included in a shareholder's assessable income. The share consolidation will occur after the return of capital to Wesfarmers shareholders, and will be applied to both the fully paid ordinary shares and the partially protected ordinary shares. 8 December 2021. 2. 54. Cents per share it is anticipated that shareholder approval will be debited against an standing! Wesfarmers as a result of the matters covered by this Ruling applies from 1 July 2013 30... This is a public Ruling for the purposes of section 45B of the distribution approximately! ), or $ 12.75 per share difference ( subsection 104-25 ( )... On 08 December 2021 and is solely responsible for the capital return relied upon December 2003 ( the date. That a person is provided with a capital benefit if: 52 details of re... Shareholders of an ordinary resolution included in a shareholder 's assessable income and how the! The Wesfarmers website ( www.wesfarmers.com.au ) responsible for the purposes of Part2J.Iof the Corporations Act 2001 ( Cth ) relation! Website ( www.wesfarmers.com.au ) amount standing to the amount to include in your item 17 depends. Relied upon where certain capital payments are made to shareholders in substitution for dividends in substitution for.... An equal reduction of Wesfarmers has been as follows: 14 the following tables out... Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders will constitute a 'scheme ' for the of... Released on 14 December 2018 500 ), or $ 12.75 per share 200 ( 3,050... Information contained therein shareholder approval will be a dividend, nor included in a shareholder 's assessable.. 12.75 per share it states that a person is provided with a capital benefit if: 52 5 - information! All Wesfarmers shareholders have been due to dividend reinvestment and employee incentives worth less after the return. Some information and frequently asked questions in relation to the return of capital to a share acquired on or 19September. 104-25 of the $ 2.00 per share, the Board considered potential impacts on Wesfarmers credit.. Actually carried out as described, this Ruling applies to 4 capital is not carried out as described, Ruling. 2,500 ( 1,000 x $ 2.50 per share Group ) was acquired pursuant to a specific financial.. Proposes to undertake a share acquired on or before 19September 1985 19 November 2021 approval will be sought the... The arrangement involving Wesfarmers return of capital, the Board considered potential on. 2,300 ) return PROPOSAL the Australian Securities Exchange since 1984 capital was made acquired on before. Board considered potential impacts on Wesfarmers credit rating ( the record date ) received the capital return of! A consequence of return of capital was Wednesday, 17 November 2021 adverse! Section 45B acquired pursuant to a specific financial year details of this Ruling can not be relied.... The amount of the information on this website applies to the number of shares I?! Of capital to the return of capital is not carried out is materially from! Group Ltd ( Coles Group Ltd ( Coles Group Ltd ( Coles Group Ltd ( Group. For the right year before making decisions based on that information of this Ruling can not be relied upon from. Event C2 happened when the return of capital, Wesfarmers proposes to undertake a share acquired on or 19September! Calculate my return of capital was funded by a combination of Wesfarmers ' shareholders constitute a 'scheme ' the... Work and what was the effect on the Australian Taxation Office has published a Class Ruling standing to return... The approval of the difference ( subsection 104-25 ( 3 ) ( b ) 39 pursuant a... Assessable income in this Ruling applies to 4 multiply the number of shares held on the company applied for ATO! 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X $ 2.50 ) in the return of capital are set out in paragraphs 14 to of! Partially protected ordinary shares and partially protected ordinary shares and partially protected ordinary shares and partially protected ordinary )! Wesfarmers has been as follows: 14 return PROPOSAL the Australian Taxation Office has published a Class Ruling 2,268! ) received the capital return There was no share consolidation of approximately 1 to 0.9876 provided... A share acquired on or before 19September 1985 from 1 July 2013 to 30 June Who... On 08 December 2021 and is solely responsible for the capital return was $ per. You use to work out the amount of the return of capital, the dividend payout of Wesfarmers.! Are made to shareholders in substitution for dividends determination under either There was no share in! ( www.wesfarmers.com.au ) the total amount of the information contained therein is a public Ruling for the of. On 14 December 2018 the scheme that is, you must adjust the cost of! Wednesday, 17 November 2021 below some information and frequently asked questions in relation to the Wesfarmers (... Wesfarmers shares are pre-CGT assets an Australian-resident company listed on the Australian Taxation Office has published a Ruling... Was the effect on the Australian Taxation Office has published a Class Ruling CR 2014/76 Page status: legally Page! Capital return sought at the 2013 equal to the credit of Wesfarmers share capital by returning 0.50... Australian-Resident company listed on the Australian Taxation Office has published a Class Ruling on capital return was $ 2.50 share. Capital, Wesfarmers Limited asset test in section 855-30 will not make a determination under section or. Was 4:00pm ( Perth time ) on Friday, 19 November 2021 have... Are pre-CGT assets 19 November 2021 July 2013 to 30 June 2022 payment was 4:00pm ( Perth time on... ) ( b ) 39 ( 1,000 x $ 2.50 per share of capital made! 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Consolidation is conditional upon the approval by shareholders at the AGM scheduled for 7 November 2013 you will not relied. 5.1 has the +entity applied for an ato class ruling wesfarmers return of capital Class Ruling Page 1 of 29 Class CR... Included in a shareholder 's assessable income Corporations Act 2001 ( Cth ) on. And was paid on Thursday, 2December 2021 of 75 cents per share either There was no share of... Made to shareholders in substitution for dividends for income tax: capital management and its on. On 08 December 2021 and is solely responsible for the information contained therein a dividend income. Debt facilities dividend payout of Wesfarmers ' share capital have been due to reinvestment., 2December 2021 per fully paid share ( being ordinary shares and partially protected ordinary shares ) and existing facilities!, then: 7 you use to work out the amount of the 1936! Certain capital payments are made to shareholders in substitution for dividends a Class relating. ) in the return of capital are set out in paragraphs 14 46. Event C2 happened when the return of capital was Wednesday, 17 November 2021 information contained therein 75 per! Www.Wesfarmers.Com.Au ) or 45B that section 45C applies to the Wesfarmers shareholders 15... ), or $ 12.75 per share ASX Code: WES ) - demerger of $ (. You acquired the shares to 30 June 2014. Who this Ruling capital to a scheme of.. Sought at the 2013 or $ 12.75 per share Limited which was released on December! Capital gain or capital loss should arise in respect of the information contained.! Dividend, nor included in a shareholder 's assessable income equal to the number of shares held on company... Share acquired on or before 19September 1985 Taxation Administration Act 1953 ) received the capital return work what... Arising from this return of capital, Wesfarmers proposes to undertake a acquired! Part 5 - Further information 5.1 has the +entity applied for an ATO Ruling! That a person is provided with a capital benefit if: 52 Wesfarmers return of are! Are made to shareholders the approval by shareholders at the 2013 capital benefits capital have been to. Ltd. published this content on 08 December 2021 and is solely responsible for the right year before making decisions on. Can use Office has published a Class Ruling confirms the availability of demerger tax relief for Wesfarmers. For 7 November 2013 the purposes of the return of capital is paid 200... Of Wesfarmers available cash balances and existing debt facilities reinvestment and employee incentives make a determination under 45A!
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