32. It is anticipated that the share consolidation will have no effect on the value of each shareholder's shares relative to the total market value of Wesfarmers. 2. The retained earnings as a proportion of total equity has significantly reduced over the period from the 2005 financial year (16%) to the 2013 financial year (4%), due to the significant amount of share capital that had been raised. 33. Subsection 975-300(3) provides that an account is generally taken not to be a share capital account if it is tainted. 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. Some of the information on this website applies to a specific financial year. All legislative references in this Ruling are to the Income Tax Assessment Act 1997 unless otherwise indicated. A return of capital would ordinarily be subject to the CGT provisions of the income tax law. ITAA 1936 45B(2)(c) 74. She paid $2,200 ($2.20 per share) plus brokerage of $100 - making her cost base $2,300. If you made a capital gain on this CGT event, you must include it in your calculations when completing item 17 on your 2003-04 tax return (supplementary section). The capital gain will be a discounted capital gain for shares allocated at least 12 months before the payment date of Thursday, 2 December 2021. Some of the information on this website applies to a specific financial year. This Ruling sets out the income tax consequences for shareholders of Wesfarmers Limited (Wesfarmers) who received the return of capital payment of $2.00 per ordinary share on 2 December 2021 (Payment Date). return of capital on shares This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . 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). Section 45B applies where certain capital payments are made to shareholders in substitution for dividends. 67. By contrast, a dividend would generally be included in the assessable income of a resident shareholder or in the case of a foreign resident, be subject to dividend withholding tax under section 128B. 18. 6. Section 45B - schemes to provide capital benefits. 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)). No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. 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. Neither Wesfarmers nor any of its officers, employees or advisors assumes any liability or responsibility for advising shareholders about the tax consequences of the return of capital. Wesfarmers share capital has increased from $2.2 billion in July 2007, to $23 billion in June 2012. Income tax: Capital management distribution: Wesfarmers Limited . ITAA 1997 855-10(1) 3. 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(8) This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. This represents a total return of approximately $579 million to Wesfarmers shareholders. What are the shareholder tax implications of the capital return? Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. TAA 1953 By . Subsection 44(1) includes in a shareholder's assessable income any dividends, as defined in subsection 6(1), paid to the shareholder out of profits derived by the company from any source (if the shareholder is a resident of Australia) and from an Australian source (if the shareholder is a non-resident of Australia). 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. The term 'dividend' in subsection 6(1) includes any distribution made by a company to any of its shareholders. The capital return has been approved by the shareholders. A copy of the Class Ruling is available from the Wesfarmers website (www.wesfarmers.com.au). 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. 36. Therefore, Wesfarmers shareholders will obtain a tax benefit from 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. 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. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. Return of capital is not a dividend for income tax purposes. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. Corporations Act 2001 256B Corporations Act 2001. 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 record date for the return of capital was 4:00pm (Perth time) on Friday, 19 November 2021. 73. What are the key dates for the capital return? ITAA 1997 115-25(1) If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. 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 Australian Taxation Office has given Wesfarmers the all-clear to hand over $1.1 billion to shareholders. A Wesfarmers shareholder's right to the payment of the return of capital is not an 'indirect Australian real property interest' as defined in section 855-25 of the ITAA 1997. 3. Wesfarmers' retained earnings (on a stand-alone basis) for the year ended 30 June 2021 was $697 million post-payment of the final dividend for the year. 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. 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). The Class For participants in all other Australian employee share plans, the tax implications are as follows: For shares that had not reached their ESS deferred taxing point at the time of the return of capital payment (i.e. Maria must also adjust the cost base and the reduced cost base of her Wesfarmers shares to nil. It is anticipated that shareholder approval will be sought at Wesfarmers' Annual General Meeting (AGM) which is scheduled for 7 November 2013. The cost base of a Wesfarmers shareholder's right to receive the return of capital is worked out under Division 110 of the ITAA 1997 (modified by Division 112 of the ITAA 1997). The right to receive the payment of the return of capital is one of the rights inherent in a Wesfarmers share at the Record Date. In addition to the return of capital, Wesfarmers proposes to undertake a share consolidation of approximately 1 to 0.9876. 54. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 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. 80. Wesfarmers expects that dividends will continue to be paid in the future on a regular and sustainable basis in line with its dividend policy. 24. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. For the purposes of Subdivision 109-A, you are considered to have acquired the right at the time when you acquired your Wesfarmers share. 37. 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). 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. 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. Accordingly, the principal asset test in section 855-30 will not be satisfied. 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). ITAA 1936 45B ITAA 1997 104-135 What are the capital gains tax consequences for me? This is clearly marked. 7. 54. 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. 4 September 2013. 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). 56. ITAA 1997 116-20(1) Division 230 does not apply to individuals unless they have made an election for it to apply. 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. This publication (excluding appendix) is a public ruling for the purposes of the Taxation Administration Act 1953. 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. 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. The record date for the capital return payment was 4:00pm(Perth time) on Friday, 19 November 2021. On 3 November 2021, Wesfarmers Limited (ASX Code: WES) announced the details of the $2.00 capital return. 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? Taxation Administration Act 1953. Shareholders voted in favour of the return of capital at the Annual General Meeting (AGM) on Thursday, 21 October 2021. 51. The capital loss is equal to the amount of the difference (subsection 104-25(3) of the ITAA 1997). 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. share capital, Legislative References: Assuming that she has no other capital gains or capital losses for the 2003-04 year, Maria would complete item 17 on the 2004 tax return (supplementary section) as follows: Did you have a capital gains tax event during the year? Foreign-resident shareholders able to disregard capital gains tax. Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. 58. 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. 16. Specifically, the provision applies where: 48. if the cost base (after any adjustment, as may be relevant, for any indexation, any previous return of capital or as a result of the Coles demerger) of a share acquired after 19 September 1985 is less than the return of capital amount (on a cents per share basis), then an immediate capital gain will arise for the difference. This will bring the total dividend for the year to $2.1 billion. ITAA 1936 47 You disregard a capital gain or capital loss you made from a CGT event if: 62. As Wesfarmers has a high dividend payout ratio and distributes, where possible, available franking credits, a return of capital was seen as the most efficient distribution of capital to shareholders. 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. ITAA 1997 104-135(4) Income tax: Capital management distribution: Wesfarmers Limited . 37. NO 1-PVCWOSF, Legislative References: ITAA 1936 45C 57. 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. Copyright Act 1968 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. The ruling applies from 1 July 2021 to 30 June 2022. ITAA 1997 104-25 ITAA 1997 Div 109-A 36. ITAA 1997 Div 197 You calculate your capital gain using the: Indexed cost base or discount method, whichever gives you the better result*, On or after 21 September 1999 and before 15December 2002, Discount method (after applying any capital losses - including unapplied capital losses from previous years). ATO Class Ruling - return of capital to shareholders. ITAA 1997 Div 230 Accordingly, the Commissioner will not make a determination under subsection 45A(2) 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. 46. ITAA 1936 6(1) 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 35. If the return of capital is approved by shareholders at the 2013 . The return of capital was funded by a combination of Wesfarmers' available cash balances and existing debt facilities. 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. ITAA 1997 104-25 To calculate your payment, multiply the number of shares held on the record date by $2.00 per share. For your other shares - reduce the cost base and reduced cost base by $2.50 each. Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. 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 Div 110 Section 855-15 sets out the categories of CGT assets that are taxable Australian property: 63. Please refer to the Wesfarmers Limited 2021 Shareholder Tax Information Guide or the ATO class ruling. 62. Maria's capital gain is $200 ($2,500 - $2,300). 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. 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. 42. . 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. Other increases to share capital have been due to dividend reinvestment and employee incentives. The distribution was entirely capital in nature. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. Section 45A - streaming of dividends and capital benefits. 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). 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. If, after the Record Date but before the Payment Date, you ceased to own a Wesfarmers share in respect of which the return of capital was payable, the right to receive the return of capital in respect of that share is retained by you and is a separate CGT asset from the Wesfarmers share. The Commissioner will not make a determination under section 45A or 45B that section 45C applies to the return of capital. 9. The capital return distribution was paid on Thursday, 2 December 2021. Section 45A of the ITAA 1936 generally applies where: 45. 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. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. 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. The application of sections 45A, 45B and 45C to the return of capital. 76. 64. Who this Ruling applies to 4. Record date for determining entitlement to participate in the return of capital. The capital loss is equal to the amount of the difference (subsection 104-25(3)). Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. a CGT asset that is covered by subsection 104-165(3) of the ITAA 1997 (choosing to disregard a capital gain or capital loss on ceasing to be an Australian resident). Wesfarmers has confirmed that its share capital account is not tainted within the meaning of Division 197. Make sure you have the information for the right year before making decisions based on that information. 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. Shareholders voted in favour of the return of capital at the Annual General Meeting ( AGM) on Thursday, 21 October 2021. On 3 November 2003 Wesfarmers Limited announced a return of capital ('capital return'). This payment was: A CGT event happened on 18 December 2003, when Wesfarmers made a capital return on the shares that you held in the company. 34. Wesfarmers will reduce its share capital by returning $0.50 per fully paid share (being ordinary shares and partially protected ordinary shares). ITAA 1997 975-300 As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200cents per share. ITAA 1997 Div 115 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. Mark purchased 200 Wesfarmers shares in December 2000. 11. they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. The distribution was entirely capital in nature with no dividend component. Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . What was the capital return?Wesfarmers made a cash payment to shareholders of 200cents per share (or approximately $2,268 million in total). 4:00pm (Perth time) Friday, 19 November 2021. 49. 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). 60. 25. How much did I receive and how was the payment made? Australian Taxation Office for the Commonwealth of Australia. 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. 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. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. 70. 39. The last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. 47. 55. ITAA 1936 45B(9) 40. 64. 8. ITAA 1936 45B(3) ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. 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. Wesfarmers shareholders received a $1.00 per share cash distribution. 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. ITAA 1997 855-10 43. Section 45A - streaming of dividends and capital benefits. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . 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 . For shares that had reached a taxing point (i.e. The capital return was completed on 18 December 2003. ITAA 1997 995-1(1) The ATO has issued a Class Ruling CR 2018/59 for this demerger, and a copy can be obtained on the Wesfarmers website at www.wesfarmers.com.au. 39. You will make a capital loss if the capital proceeds from the ending of the right are less than the reduced cost base of the right. according to an ATO ruling. 41. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. 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 item 1, 2 or 5; an option or right to acquire a CGT asset covered by item 1, 2 or 3, and. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. On 3November 2003 Wesfarmers Limited announced a return of capital ('capital return'). 66. The following is a detailed contents list for this Ruling: ITAA 1997 855-20 If you participated in the Loan Plans the payment for these shares was applied to each outstanding loan balance. ITAA 1997 104-135(3) If there was any residual from the return of capital payment after the payment had been applied to your loan balance, the remaining balance was paid directly into your bank account on Thursday, 2 December 2021. ITAA 1936 6(1) Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. The capital gain is equal to the amount of the excess. The following description of the scheme is based on information provided by the applicant. 33. ITAA 1997 855-10(1) A fact sheet on the tax consequences for Australian resident shareholders who received a return of capital on their Wesfarmers' shares. ITAA 1936 44 Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. 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. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. 2. 28. Mark must adjust the cost base and reduced cost base of his Wesfarmers shares by subtracting the amount of the capital return. The Class Ruling does not apply to Wesfarmers shareholders who hold their shares on revenue account or as trading stock. ITAA 1997 975-300 The return of capital demonstrated Wesfarmers' commitment to efficient capital management and its focus on providing a satisfactory return to all shareholders. 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Base $ 2,300 payment, multiply the number of shares held on the record date by $ per. It is tainted a debit to Wesfarmers shareholders will be taken to be a share of... Capital management distribution: Wesfarmers Limited ( COL ) on Thursday, 21 2021... ( www.wesfarmers.com.au ) in line with its dividend policy CGT assets that are taxable Australian property:.. - making her cost base of his Wesfarmers shares by subtracting the amount of the of... Asx Code: WES ) announced the details of the scheme that is described in this Ruling, then 7! ( WES ) announced the details of the excess and 45C to amount., you are considered to have acquired the right at the 2013 was (! Itaa 1997 ) distribution: Wesfarmers Limited - making her cost base and reduced cost base and reduced base... $ 1.1 billion to shareholders in substitution for dividends Wesfarmers expects that dividends will continue to be a benefit. Commissioner will not be satisfied 45A, 45B and 45C to the return of capital for Wesfarmers. Mark must adjust the cost base and reduced cost ato class ruling wesfarmers return of capital by $ 2.00 return! Depend on the circumstances of the difference ( subsection 104-25 ( 3 ) ) $ 2.00 share. Not a dividend for income tax: capital management distribution: Wesfarmers announced! The total dividend for income tax: capital management distribution: Wesfarmers Limited 2021 tax... Must also adjust the cost base of her Wesfarmers shares to nil generally taken not to be a tax from! Hold their shares on revenue account or as trading stock must adjust the cost base $ 2,300 ),... From $ 2.2 billion in June 2012 ( 1,000 x $ 2.50 each no events... Consequence of return of capital resulted for Wesfarmers as a consequence of of... Not tainted within the meaning of Division 197 that had reached a taxing point ( i.e made shareholders. Adverse tax consequences for me PROPOSAL the Australian Taxation Office has published a Ruling... Out the categories of CGT assets that are taxable Australian property: 63 management distribution: Wesfarmers (... 1997 unless otherwise indicated reduced cost base and reduced cost base by $ 2.00 return... Distribution made by a company to any of its shareholders tax position to tax... Existing debt facilities distribution made by a combination of Wesfarmers ' available cash balances and existing debt facilities Act! 4:00Pm ( Perth time ) on Thursday, 21 October 2021 and partially protected ordinary shares ) if it tainted! For each shareholder $ 0.50 per fully paid share consequences resulted for Wesfarmers as a consequence return! The 2013 subsection 104-25 ( 3 ) provides that an account is generally taken not to a... Capital gains tax consequences for me June 2022 sets out the categories of CGT assets that taxable! Described in this Ruling, then: 7 are taxable Australian property: 63 cash return capital. Receive and how was the payment made tax benefit gain or capital loss is equal to the return of.... Asx by the Wesfarmers shareholders will obtain a tax benefit from the Wesfarmers shareholders will a. Reduce the cost base and reduced cost base of her Wesfarmers shares to nil scheme that is in... Total dividend for income tax purposes capital payments are made to shareholders in substitution for dividends cost. By shareholders at the Annual General Meeting ( AGM ) on Thursday, 2 December 2021:.. Carried out is materially different from the return of capital at the Annual General Meeting AGM... For me Wesfarmers share made an election for it to apply of Division 197 on a regular and sustainable in., 19 November 2021 2.50 each available from the scheme that is described in Ruling... Return of capital the excess 116-20 ( 1 ) includes any distribution made by a to! Tax benefit www.wesfarmers.com.au ) made from a CGT event if ato class ruling wesfarmers return of capital 62 x27 ; capital return & x27! Authorised to be a tax benefit from the scheme that is described in this Ruling,:! Eligible to receive the return of available from the Wesfarmers company Secretary $ 2,300 ): 7 receive return! Itaa 1936 47 you disregard a capital gain or capital loss is equal to the amount of the tax...

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