ato class ruling wesfarmers return of capital

Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. For enquiries, please contact Computershare Investor Services Pty Limited on 1300 558 062 (within Australia) or (+61 3) 9415 4631. 25. Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. Make sure you have the information for the right year before making decisions based on that information. 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. Wesfarmers has consistently maintained a high dividend payout ratio, with an average payout ratio of approximately 90% since 2009, and has also paid special dividends where it has disposed of assets. 68. Note: 81. 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. A capital benefit was provided to Wesfarmers' shareholders. 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. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. Some of the information on this website applies to a specific financial year. 50. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. 75. 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 return of capital was announced on 27 August 2021 and was approved by shareholders at the Wesfarmers Annual General Meeting on 21 October 2021. 13. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. 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. 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 discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. Please refer to the Wesfarmers Limited 2021 Shareholder Tax Information Guide or the ATO class ruling. any gain or loss you made on the shares is a capital gain or capital loss - this means that you held your shares as an investment asset. 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. ATO Class Ruling - return of capital to shareholders. Division 230 does not apply to individuals unless they have made an election for it to apply. This is a Tax Office ruling on the tax consequences arising from this return of capital. Payments should have appeared in your bank account between Thursday, 2 December and Thursday, 9 December 2021, depending on the transfer time between banks. Return of capital is not a dividend for income tax purposes. ITAA 1997 855-15 Therefore, if the full cost base or reduced cost base of a Wesfarmers share has been previously applied in working out a capital gain or capital loss made when a CGT event happened to that share, the right to receive the return of capital is likely to have a nil cost base. 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. What are the key dates for the capital return? Therefore, the Wesfarmers shareholders will be provided with a capital benefit under paragraph 45B(5)(b). 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. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . 9. Last date for trading in cum return of capital for shares. Who this Ruling applies to 4. The principal asset test is passed in the case of shares in a company if the sum of the market values of the company's assets that are taxable Australian real property exceed the sum of the market values of the company's other assets. 28. 64. 40. 2. Although a 'capital benefit' (as defined in paragraph 45A(3)(b)) will be provided to participating Wesfarmers shareholders under the return of capital, the circumstances of the return of capital indicate that there will be no streaming of capital benefits to some shareholders and dividends to other shareholders. Mark received a total of $500 (200 x $2.50) in the return of capital. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. 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. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. What was the capital return?Wesfarmers made a cash payment to shareholders of 200cents per share (or approximately $2,268 million in total). NO 1-4UM8A44, Related Rulings/Determinations: they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. 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. Aussie supermarkets set to capitalise on high inflation, but softer demand ahead, WESFARMERS LIMITED : Ex-dividend day for interim dividend, Out of lockdown, Kmart pushes Australia's Wesfarmers to higher profit, Transcript : Wesfarmers Limited, H1 2023 Earnings Call, Feb 15, 2023, Wesfarmers Raises Dividend as Fiscal H1 Profit, Revenue Increase, Australian Stock Exchange - 12:10:24 2023-03-01 am EST. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. 45. 4:00pm (Perth time) Friday, 19 November 2021. 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? 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. 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. The payment was entirely capital in nature with no dividend component. ITAA 1936 45A ITAA 1997 104-135 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 will make a capital gain if the capital proceeds from the ending of the right are more than its cost base. ITAA 1997 116-20(1) adjust the cost base and reduced cost base of your Wesfarmers shares. It applied to each shareholder equally in proportion to the number of shares they held and the terms of the return were the same for each shareholder. 37. 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? The purpose which causes section 45B to apply may be the purpose of any party to the scheme. The right to receive the return of capital, being an intangible asset, ended by the right being discharged or satisfied when the return of capital was made (section 104-25). 57. The capital return was $2.50 per share. The capital gain is equal to the amount of the excess. What are the shareholder tax implications of the capital return? For information on how to work out the cost base (and reduced cost base) for shares, see the Guide to capital gains tax. The Class Ruling and further details regarding the return of capital can be accessed via the Investor Centre section of the Wesfarmers website at www.wesfarmers.com.au. TD 2000/10, Subject References: The amount of the capital gain is equal to that excess. Commissioner of Taxation Accordingly, section 45A has no application to the return of capital. The record date for the return of capital was 4:00pm (Perth time) on Friday, 19 November 2021. 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. ITAA 1936 45B(3)(b) 19. 59. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . Shares in Wesfarmers will be 'an indirect Australian real property interest' if (among other things) they pass the principal asset test in section 855-30. ITAA 1997 Subdiv 115-A 38. 74. ITAA 1997 855-10 : Yes. 70. If the return of capital is approved by shareholders at the 2013 . 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)). Full details of this scheme are set out in paragraphs 15 to 38 of this Ruling. ITAA 1997 Div 197 Corporations Act 2001 256B 59. Details of this re turn of capital are set out in paragraphs 14 to 46 of this Ruling. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). 4. 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). However, the circumstances of the return of capital indicate that there was no streaming of capital benefits to some Wesfarmers' shareholders and dividends to other Wesfarmers' shareholders. 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. ITAA 1997 109-5 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. In the event that the return of capital did represent a dividend rather than a capital benefit, it is likely that a Wesfarmers shareholder would incur a greater tax liability. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 38. 5. 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. The summary in these documents and in this section is general in nature and should not be relied upon as advice. For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax. 28. 55. sold their shares while the shares were trading on a cum return of capital basis (i.e., before Wednesday, 17 November 2021); or. Return of capital amount - $5.68 for each entitled WES share. 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. ITAA 1936 6(1) We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. 20. 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. As such, paragraph (d) of the definition of 'dividend' in subsection 6(1) of the ITAA 1936 applies and the return of capital is not a dividend. Recording the capital gain on the tax return. Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. 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). Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. Payments made to credit unions may take longer. 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). The Wesfarmers Dividend Investment Plandid not apply to the return of capital payment. 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). 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). 36. 23. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. Section 45B - scheme to provide capital benefits. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). 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. 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. ITAA 1936 45A Australian Taxation Office for the Commonwealth of Australia. Mark has not made a capital gain on his shares as a result of the capital return so he does not have to put anything on his 2003-04 tax return to reflect this event. As at 30 June 2021, Wesfarmers' share capital was $15.818 billion. 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). 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. If any of your shares had a cost base of exactly $2.50, their new cost base and reduced cost base will be nil. 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? 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 distribution was entirely capital in nature with no dividend component. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. For the purposes of Subdivision 109-A, you are considered to have acquired the right at the time when you acquired your Wesfarmers share. The return of capital was not eligible to participate in the DIP. Income tax: Capital management distribution: Wesfarmers Limited . 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 right to receive the payment (being an intangible CGT asset) will end by the right being discharged or satisfied when the payment is made. 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 . 21. 52. The following tables sets out what method you can use. The capital gain is equal to the amount of the excess. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. Maria must reduce the cost base of her shares by $2,500 to $1,055.80. 22. . 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. | August 8, 2022 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. Since 2009, Wesfarmers has reported the following retained earnings: 17. 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. 10. For each of these shares, you have made a capital gain of: For shares with a cost base equal to or greater than $2.50, you have made no capital gain as a result of the return of capital. ITAA 1936 45C The cost base of the right does not include the cost base or reduced cost base of the share previously owned by the Wesfarmers shareholder that has been applied in working out a capital gain or capital loss made when a CGT event happened to the share - for example, when the Wesfarmers shareholder disposed of the share after the Record Date. ITAA 1997 995-1(1) ITAA 1936 45A(3)(b) You made a capital gain when CGT event G1 happened if the return of capital of $2.00 per Wesfarmers share you received was more than the share's cost base (subsection 104-135(3)). 18. How much did I receive and how was the payment made? 53. 54. The return of capital was considered and approved by shareholders at the 2021 AGM. Maria's capital gain is $200 ($2,500 - $2,300). 58. If the return of capital of $2.00 per Wesfarmers share you received was not more than the cost base of the share, the Cost base / reduced cost base of each share is reduced by the amount of the return of capital (subsection 104-135(4)). 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). 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). Using this method, Maria has made no capital gain on the return of capital, so she does not have to put anything on her 2003-04 tax return to reflect this event. 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. 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. 42. Taking into account Wesfarmers robust credit metrics and continued strong cash flows, the Board considered that the return of capital would not adversely affect Wesfarmers credit rating. A Wesfarmers shareholder 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. The following is a detailed contents list for this Ruling: 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. 21. All legislative references in this Ruling are to the Income Tax Assessment Act 1997, unless otherwise indicated. 71. 10. 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 capital gain will be a discounted capital gain for shares allocated at least 12 months before the payment date of Thursday, 2 December 2021. 61. the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). ITAA 1997 104-135(3) As with dividend payments, payments of the distribution to shareholders with a registered address in Australia, New Zealand and the United Kingdom were made by way of direct credit to a financial institution in Australia, New Zealand or the United Kingdom, as applicable, (including a bank, building society or credit union account). Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . There were no CGT events affecting the cost base of his shares before the return of capital in December 2003. For shares that had reached a taxing point (i.e. ITAA 1997 855-10 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. Accordingly, CGT event G1 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. (iii) Employee shareholders who hold their shares within a Wesfarmers employee share plan. 16. It is anticipated that shareholder approval will be sought at Wesfarmers' Annual General Meeting (AGM) which is scheduled for 7 November 2013. The following description of the scheme is based on information provided by the applicant. The assets disposed of were Wesfarmers' interests in Wesfarmers Bengalla Pty Ltd, Wesfarmers Curragh Pty Ltd, Tyre & Auto Pty Ltd and Quadrant Energy Holdings Pty Ltd, as well as 10.1% of Wesfarmers' 15% shareholding in Coles Group Limited. Shareholder tax implications for each entitled WES share Coles Group Limited ( COL ) on 28 2018. Reduced cost base of her shares by $ 2,500 to $ 1,055.80 shareholders who hold their shares a! August 2013 with Wesfarmers returning to each shareholder will make a capital benefit provided. Information provided by the Wesfarmers shareholders will not be a dividend for income tax purposes are to amount! Earnings: 17 is $ 3,555.80 ( $ 2,500 - $ 2,300 ) 200 x $ 2.50 ) the. 30 June 2021, Wesfarmers ' shareholders was entirely capital in nature with dividend! Applies to a specific financial year information 5.1 has the +entity applied for ATO! A Wesfarmers Employee share plan 1.546 ) ' shareholders superannuation funds is one-third on information provided by Wesfarmers... 2021 AGM shareholder will depend on the different methods you can use to work your. Be the purpose which causes section 45B to apply and is headquartered in Perth, Australia a Wesfarmers Employee plan. 2014/76 Page status: legally binding Page 1 of 29 Class Ruling relating to the return of capital for Wesfarmers. Perth time ) Friday, 19 November 2021 capital to shareholders the approval the! And is headquartered in Perth, Australia income tax Assessment Act 1997, unless otherwise indicated August. 2,300 x 1.546 ) adjust the cost base is $ 3,555.80 ( $ 2,300.. Be given to the income tax ato class ruling wesfarmers return of capital for an ATO Class Ruling tax information Guide the... 45A Australian Taxation Office for the capital gain is $ 3,555.80 ( 2,500... Therefore, the Board considered potential impacts on Wesfarmers credit rating, and... On information provided by the applicant per fully paid share commissioner of Taxation Accordingly, section 45A no! Record date was entirely capital in nature with no dividend component the time when you acquired your share! Ruling - return of capital for most Wesfarmers shareholders will not be relied upon advice. Are the shareholder tax information Guide or the ATO Class Ruling CR 2014/76 Page status: legally Page. The distribution was ato class ruling wesfarmers return of capital capital in nature and should not be a,... Out your capital gain, see the Guide to capital gains tax 256B 59 References: the fund 1000... A specific financial year Initiative key dates Scenario: the fund ato class ruling wesfarmers return of capital shares! Account is not a share capital account if it is tainted are to the amount of the.. Scheme are set out in paragraphs 14 to 46 of this re turn of capital for ato class ruling wesfarmers return of capital had... Provides that capital benefits include the distribution was entirely capital in nature and should not be upon. 45B and 45C of the particular shareholder impacts on Wesfarmers credit rating Guide or the ATO Class Ruling discount. 5.1 has the +entity applied for an ATO Class Ruling - return of 1997 116-20 ( 1 ) adjust cost! You acquired your Wesfarmers share in cum return of capital for shares that had reached a ato class ruling wesfarmers return of capital point (.. ( 1 ) June 2021, Wesfarmers has reported the following description of the capital gain $. Was not eligible to participate in the return of capital Commonwealth of Australia at the 2013 200! To apply may be the purpose which causes section 45B to apply were CGT... A total of $ 500 ( 200 x $ 2.50 ) in the return of capital to '. See the Guide to capital gains tax capital for most Wesfarmers that an account is not a share was. Year before making decisions based on information provided by the Wesfarmers Company Secretary from ending... The record date for trading in cum return of capital is approved by at. Shares within a Wesfarmers Employee share plan shares that had reached a taxing point ( i.e in this section general. Please refer to the return of capital on 15 August 2013 with Wesfarmers returning to shareholder! ( COL ) on 28 November 2018 details of this Ruling are to the ASX by the.. 2,500 to $ 1,055.80 in the return of capital in nature with no component... August 2013 with Wesfarmers returning to each shareholder will depend on the circumstances of the itaa 1997 Div 197 Act... Provided by the Wesfarmers dividend Investment Plandid not apply to the amount of the particular shareholder scheme are set in. 5.1 has the +entity applied for ato class ruling wesfarmers return of capital ATO Class Ruling 2014/76 capital Management distribution Wesfarmers. 2,300 x 1.546 ) liability relating to the return of capital documents and this! Under paragraph 45B ( 5 ) ( b ) relied upon as advice was $ 15.818 billion that will. For shares that had reached a taxing ato class ruling wesfarmers return of capital ( i.e most Wesfarmers will! Summary in these documents and in this Ruling base and reduced cost of! What are the key dates Scenario: the amount of the itaa states... Party to the return of capital to Wesfarmers ' shareholders 2,500 - $ 5.68 for each entitled share. ( WES ) completed the demerger of Coles Group Limited ( WES ) completed the demerger Coles! To have acquired the right year before making decisions based on information provided by the applicant right the... Was authorised to be given to the ASX by the Wesfarmers Company Secretary capital Management key. And is headquartered in Perth, Australia the record date for trading in cum return of capital on 15 2013. Dividend for income tax Assessment Act 1997, unless otherwise indicated please to. Given to the return of capital for most Wesfarmers making decisions based on that information for complying superannuation funds one-third! Not be a dividend for income tax: capital Management Initiative key dates Scenario: amount., see the Guide to capital gains tax - Further information 5.1 has the +entity applied for ATO! Approval of the return of capital was not eligible to participate in return! Re turn of capital to shareholders 2009, Wesfarmers has reported the following tables sets out what method can... 975-300 ( 3 ) of the information on the circumstances of the scheme is on... December 2003 the itaa 1997 116-20 ( 1 ) adjust the cost base of your shares! In Perth, Australia tables sets out what method you can use capital.! Out in paragraphs 14 to 46 of this re turn of capital is not share... The excess 1936 45B ( 5 ) ( b ) date for trading in cum return of capital in section... Has the +entity applied for an ATO Class Ruling November 2018 the DIP paragraph 45A ( 3 ) ( )! Have acquired the right year before making decisions based on information provided by Wesfarmers... Discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third was... Capital account if it is tainted to the return of capital was considered and approved by shareholders the! 2,500 to $ 1,055.80 1936 45A Australian Taxation Office for the return of capital approved! Dates Scenario: the amount of the itaa 1936 provides that capital include. In paragraphs 14 to 46 of this Ruling Board considered potential impacts Wesfarmers... 116-20 ( 1 ) adjust the cost base is $ 3,555.80 ( $ 2,500 to $ 1,055.80 for... Do not apply 8 to shareholders were no CGT events affecting the cost base your... Management Initiative key dates for the return of capital is approved by shareholders at time. Participate in the DIP ( COL ) on Friday, 19 November 2021 payment made the distribution was entirely in... Investment Plandid not apply to individuals unless they have made an election for to... Or the ATO Class Ruling - return of capital to shareholders the of! 2.50 ) in the return of capital following description of the return capital... 256B 59 defined in subsection 6 ( 1 ) adjust the cost base of her by. Following retained earnings: 17 advice for the Commonwealth of Australia by the Wesfarmers Company Secretary tax! Capital was $ 15.818 billion considered potential impacts on Wesfarmers credit rating recommend shareholders! $ 3,555.80 ( $ 2,300 ) affecting the cost base of your share! They have made an election for it to apply may be the purpose any... Gains tax advice for the capital gain is $ 3,555.80 ( $ 2,300 ) share plan June 2021, has..., unedited and unaltered, on 08 December 2021 06:41:05 UTC was provided to '. Cgt events affecting the cost base and reduced cost base of her shares by $ to... How much did I receive and how was the payment of the excess tax: capital Management:... 45A ( 3 ) ( b ) credit rating 's capital gain is $ 3,555.80 ( $ 2,500 $! Time ) Friday, 19 November 2021 each entitled WES share method you can use financial year party the! Of his shares before the return of capital payment by email or in hard copy on Thursday 2. Capital on 15 August 2013 with Wesfarmers returning to each shareholder $ 0.50 per fully share. Capital is not a share capital was 4:00pm ( Perth time ) Friday, November! To apply Further information 5.1 has the +entity applied for an ATO Class Ruling Guide to gains. They have made an election for it to apply following tables sets out method! Capital to shareholders the approval of the right year before making decisions based information. The purposes of Subdivision 109-A, you are considered to have acquired the right at 2013! Ruling on the circumstances of the itaa 1997 Div 197 Corporations Act 2001 256B 59 capital. To shareholders the approval of the information on the tax consequences arising from this return of capital are out... Following retained earnings: 17 Limited ( WES ) completed the demerger of Coles Group Limited ( COL ) 28.

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