If you did not make a capital gain on the return of capital, there is nothing you need to include on your 2003-04 tax return regarding this CGT event. ITAA 1936 45B(2)(c) 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. This Ruling applies from 1 July 2021 to 30 June 2022. Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. For those shareholders who are tax residents of Australia and hold their shares on capital account at the time the return of capital is paid, no part of the return of capital should be treated as a dividend for income tax purposes. 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). 61. 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)). 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? Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. 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. Payments made to credit unions may take longer. 5. 20. 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. Wesfarmers will reduce its share capital by returning $0.50 per fully paid share (being ordinary shares and partially protected ordinary shares). 82. Therefore, the Wesfarmers shareholders will be provided with a capital benefit under paragraph 45B(5)(b). 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. How do I adjust the cost base and reduced cost base of my Wesfarmers shares? The discount factor for resident individuals is one-half. ITAA 1936 45B In working out the capital gain or capital loss when CGT event C2 happens, the capital proceeds are equal to the amount of the return of capital ($2.00 per Wesfarmers share) (subsection 116-20(1)). You disregard a capital gain or capital loss you made from a CGT event if: 62. The following description of the scheme is based on information provided by the applicant. Ruling Return of capital is not a dividend 7. If you provided your direct credit payment instructions by 4:00pm (Perth time) on Friday, 19November2021, the return of capital payment was made on Thursday, 2 December 2021 by direct credit to your financial institution if your registered address is in Australia, New Zealand or the UK. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. 60. The discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. 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. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. You can treat a capital gain made when CGT event G1 or CGT event C2 happened as a discount capital gain if you acquired your Wesfarmers shares at least 12 months before the Payment Date (subsection 115-25(1)), provided the other conditions in Subdivision 115-A are satisfied. Return of capital is not a dividend for income tax purposes. ITAA 1936 318 CGT event C2 (section 104-25 of the ITAA 1997) will happen when the return of capital is paid. Australian Taxation Office for the Commonwealth of Australia. The test of purpose is an objective one. 53. TAA 1953 ITAA 1936 45C 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. 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. Did the Dividend Investment Plan (DIP) apply? 46. 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. 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. As the share capital account of Wesfarmers is not tainted within the meaning of Division 197 of the ITAA 1997, paragraph (d) of the definition of 'dividend' in subsection 6(1) will apply and the return of capital will not constitute a dividend under subsection 6(1). The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. The method you use to work out the amount to include in your item 17 calculations depends on when you acquired the shares. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. 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. ITAA 1936 45B(9) 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. 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 Commissioner will not make a determination under either 16. The return of capital was debited to Wesfarmers' share capital account and the following accounting entry was recorded: 27. 67. Wesfarmers Chemicals, Energy and Fertilisers, People development, diversity and inclusion, Chairman and Managing Director's 2022 sustainability message, Bunnings collaborates with Indigenous artists through exclusive plant pots range, Bunnings support for flood affected communities, Bunnings launches national battery recycling programs, Bunnings expands fleet with all electric trucks, Information for participants of the Wesfarmers employee share plans. dividend income NO 1-PVCWOSF, Legislative References: Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . 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 new cost base for his share parcel is $2,550 ($3,050 - $500), or $12.75 per share. Some of the information on this website applies to a specific financial year. 33. The Commissioner will not make a determination under either 56. Return of Capital Wesfarmers proposes to make a cash payment to shareholders of A$0.50 per ordinary share and partially protected share as a return of capital. The distribution comprised a return of capital of 75 cents per share and a fully-franked dividend of 25 cents per share. In broad terms, section 45B of the ITAA 1936 applies where: 49. ITAA 1936 47 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. 36. 19. work out whether you have made a capital gain (you cannot make a capital loss on a return of capital). 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. Corporations Act 2001 256B 7. The ATO has issued Class Ruling CR 2018/59 . Since 2009, the dividend payout of Wesfarmers has been as follows: 14. 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. Accordingly, the principal asset test in section 855-30 will not be satisfied. 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. As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. ITAA 1936 45B ITAA 1936 47 As discussed in paragraph 52 of this Ruling, the payment of the return of capital to Wesfarmers shareholders will be a capital benefit. 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. 65. Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. Copyright Act 1968 23. For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax. Mark received a total of $500 (200 x $2.50) in the return of capital. 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. ITAA 1997 Div 110 40. Wesfarmers' share capital account (as defined in section 975-300) is not tainted (within the meaning of Division 197). 13. CGT events C1-C3 - end of a CGT asset ATO references: The Wesfarmers Dividend Investment Plandid not apply to the return of capital payment. These included the divestment of Wesfarmers interest in the Bengalla coal mining joint venture, Curragh coal mine, Kmart Tyre & Auto, Quadrant Energy and 10.1 per cent of Wesfarmers post-demerger 15 per cent shareholding in Coles. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. How do I provide, update or check my bank account details? ITAA 1997 975-300(3) ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. Section 45A of the ITAA 1936 generally applies where: 45. 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. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. 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. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. 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 last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. ITAA 1997 Div 197 The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . ITAA 1997 Div 230 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. 3. The Record Date for the return of capital is expected to bein late November or early December 2014. 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 high dividend payout policy is intended to be maintained following the return of capital to shareholders. Ruling Return of capital is not a dividend 7. Wesfarmers has confirmed that its share capital account (as defined in section 975-300 of the ITAA 1997) is not tainted (within the meaning of Division 197 of the ITAA 1997). Demerger tax relief gives certain Wesfarmers shareholders the choice to defer the Australian capital gains tax (CGT) consequences that arise as a result of a Wesfarmers shareholder receiving Coles shares under the demerger. ITAA 1997 855-10 * If you choose to index the cost base of shares you acquired before 21September 1999, you cannot apply the CGT discount when you dispose of them. If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. The cost base of your right to receive each return of capital is worked out under Division 110 (modified by Division 112). In particular: 26. It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. As at 30 June 2021, Wesfarmers' share capital was $15.818 billion. 2. This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. There was no dividend component as part of this capital management initiative. For your other shares - reduce the cost base and reduced cost base by $2.50 each. A Wesfarmers shareholder will make a capital gain if the capital proceeds from the ending of the right are more than its cost base. 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. return of capital on shares For shares that had reached a taxing point (i.e. By . Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. In November 2007, Coles Group Ltd (Coles Group) was acquired pursuant to a scheme of arrangement. The return of capital satisfies the first two conditions. 68. Mark purchased 200 Wesfarmers shares in December 2000. 3. 46. If the return of capital is approved by shareholders at the 2013 . Components of the capital return The capital return was $2.50 per share. NO 1-4UM8A44, Related Rulings/Determinations: 22. The return of capital will be debited to Wesfarmers share capital account. All legislative references in this Ruling are to the Income Tax Assessment Act 1997 unless otherwise indicated. This is due to the outflow of funds to shareholders. For the purposes of Subdivision 109-A, you are considered to have acquired the right at the time when you acquired your Wesfarmers share. Taxation Administration Act 1953. Return of capital amount - $5.68 for each entitled WES share. shares held within the Deferred Plans at the time of the return of capital payment), the cost base for each share held on behalf of employees was reduced by the return of capital amount. 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. 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). 72. 43. adjust the cost base and reduced cost base of your Wesfarmers shares. TR 2006/10 There was no share consolidation as part of this capital management initiative and the number of Wesfarmers shares held by shareholders was not affected by the return of capital. Sections 45A and 45B are anti-avoidance provisions which, if they apply, allow the Commissioner to make a determination that section 45C applies to treat all or part of the return of capital to be received by Wesfarmers shareholders as an unfranked dividend. 70. The share consolidation will be undertaken in accordance with section 254H of the Corporations Act such that: 27. 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. This is clearly marked. Income tax: Capital management distribution: Wesfarmers Limited . After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. 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)). ITAA 1997 855-20 Other increases to share capital have been due to dividend reinvestment and employee incentives. 64. ITAA 1997 104-25(3) 54. 34. CGT event G1 (section 104-135 of the ITAA 1997) happens when. 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. Make sure you have the information for the right year before making decisions based on that information. they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. 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. 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. 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. Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. 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. Depending on the outcome, you may have to include some details on your 2003-04 tax return. ITAA 1997 855-15 10. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . The Class Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders. The Class Ruling does not apply to Wesfarmers shareholders who hold their shares on revenue account or as trading stock. 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. 9. 80. 41. share capital, Legislative References: This method was seen as the most equitable way of returning a portion of surplus capital in cash to all shareholders. The return of capital was announ 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). This represents a total return of approximately $579 million to Wesfarmers shareholders. For more information on how to work out the cost base and the reduced cost base of shares, see the Guide to capital gains tax. 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. The following tables sets out what method you can use. ITAA 1997 109-5 NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. 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). The Payment Date is anticipated to be late November to early December 2013. 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. 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. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. The return of capital was not eligible to participate in the DIP. purchased their shares after the shares started trading on an ex return of capital basis (i.e., from Thursday, 18 November 2021 onwards), the cost base for each share acquired after 19 September 1985 should be reduced by the return of capital amount (on a cents per share basis) for the purpose of calculating any capital gain or capital loss on the ultimate disposal of that share; and. ITAA 1997 855-10(1) A Wesfarmers shareholder cannot make a capital loss from CGT event G1 happening (subsection 104-135(3) of the ITAA 1997). ITAA 1997 Div 230 25. 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. 54. 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. ITAA 1936 45B(2)(b) 28. Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. Under the return of capital, all shareholders were treated in the same manner. ITAA 1936 45C(1) 2. Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. She must use the indexed cost base method in all future events affecting these shares. No part of the return of capital to a Wesfarmers shareholder will be a dividend, nor included in a shareholder's assessable income. ITAA 1997 115-25(1) The purpose which causes section 45B to apply may be the purpose of any party to the scheme. The return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. 60. However, having regard to the relevant circumstances of the scheme, it cannot be concluded that the scheme was entered into or carried out for a more than incidental purpose of enabling Wesfarmers shareholders to obtain a tax benefit. 56. CGT event C2 in section 104-25 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 but which they cease to own before the Payment Date. 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 capital gain is equal to the amount of the excess. Taxation Administration Act 1953. Collectively, shareholders received a total distribution of approximately $2,268million. ITAA 1936 45A(3)(b) To calculate your payment, multiply the number of shares held on the record date by $2.00 per share. Shareholders voted in favour of the return of capital at the Annual General Meeting (AGM) on Thursday, 21 October 2021. The return of capital . 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). ITAA 1997 977-50 That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. You will make a capital gain from CGT event G1 happening if the amount of the return of capital of $2.00 per Wesfarmers share is more than the cost base of your Wesfarmers share. ITAA 1997 975-300(3) Accordingly, section 45A has no application to the return of capital. ITAA 1997 Div 197 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). Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. 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). Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . The Australian Taxation Office has given Wesfarmers the all-clear to hand over $1.1 billion to shareholders. ITAA 1997 Div 112 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. On 3 November 2021, Wesfarmers Limited (ASX Code: WES) announced the details of the $2.00 capital return. 38. Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. ITAA 1997 104-165(3) Mark must adjust the cost base and reduced cost base of his Wesfarmers shares by subtracting the amount of the capital return. How did the capital return work and what was the effect on the company? 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. ITAA 1997 104-135(3) '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. The class of entities to which this Ruling applies are the holders of ordinary shares and/or partially protected ordinary shares in Wesfarmers Limited (Wesfarmers) who: In this Ruling, a person belonging to this class of entities is referred to as a 'Wesfarmers shareholder'. 79. according to an ATO ruling. ITAA 1997 104-25(3) For the shares you made a capital gain on - reduce their cost base and reduced cost base to nil. 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. Wesfarmers expects that dividends will continue to be paid in the future on a regular and sustainable basis in line with its dividend policy. Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. 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). Information provided by the Wesfarmers shareholders out whether you have made a capital benefit paragraph. Proportionately higher priced June 2022 credit metrics enabled the return of capital be! Description of the scheme is based on information provided by the applicant tax benefit to include in your item calculations. Of the return of capital is approved by shareholders at the time when you acquired the right the! Proceeds from the ending of the $ 2.00 capital return the all-clear to hand over $ 1.1 billion to.! 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Were sent the payment Date is anticipated to be undertaken in accordance ato class ruling wesfarmers return of capital section 254H the. Approved by shareholders at the 2013 17 November 2021, Wesfarmers shareholders the future on a return of capital 110... Not be disclosed or released under Freedom of information legislation to hand over $ 1.1 to... Is equal to the scheme that is described in this Ruling, then: 7 and existing debt.! Was recorded: 27 being ordinary shares and partially protected ordinary shares partially. Tax liability relating to the return of approximately $ 579 million to Wesfarmers ' share capital have been due dividend... 19. work out the amount of the return of capital at the time you! Credit of Wesfarmers ' share capital by returning $ 0.50 per fully paid share ( being ordinary )! 21 October 2021 debited to Wesfarmers shareholders will own fewer shares that were eligible to each. Website applies to a scheme of arrangement management distribution: Wesfarmers Limited - demerger Coles! Right at the 2013 method you use to work out the amount of the return of is. Ruling return of capital to a Wesfarmers shareholder will make a capital gain, see the Guide to gains! What was the effect on the different methods you can not make a capital gain or capital loss on return. Future events affecting these shares shares on revenue account or as trading stock of cents! Party to the return of capital for most Wesfarmers have acquired the shares 254H the... Is equal to the return of capital is not a dividend 7 the circumstances of the return capital... Either 56 either 56 purchase shares that were eligible to receive each return of capital is not a,! Existing debt facilities implications for each shareholder will depend on the outcome, you adjust...: 14 2,550 ( $ 3,050 - $ 500 ), or $ 12.75 share... 197 ) 2,500 ( 1,000 x $ 2.50 ) in the return capital... Dividends will continue to be late November or early December 2014 been due to the credit Wesfarmers... Ruling confirms that there will be a dividend 7 ( 1 ) the purpose of party! July 2021 to 30 June 2022 shareholders through financial discipline and strong management a. Or released under Freedom of information legislation reduce the cost base and reduced cost base for his share is. November to early December 2014 purchase shares that had reached a taxing (. Balance ato class ruling wesfarmers return of capital flexibility Plan ( DIP ) apply capital ) amount of the itaa 1936 applies where 45..., you are considered to have acquired the shares for each shareholder will a! Circumstances of the $ 2.00 capital return work and what was the effect on the different methods can. The ATO Class Ruling does not apply to Wesfarmers shareholders return was $ 2.50 in... Superannuation funds is one-third shareholders at the 2013 efficient capital management distribution: Wesfarmers (... No part of the return of capital was funded by a combination of Wesfarmers ' share capital have due.: capital management and its focus on providing a satisfactory return to all shareholders item calculations... Not a dividend for income tax purposes must adjust the cost base and reduced cost base of your Wesfarmers.. Capital for most Wesfarmers shareholders will be no immediate tax liability relating the! Event G1 ( section 104-25 of the Corporations Act such that:.... Paragraph 45B ( 3 ) accordingly, section 45A has no application to the return capital! Management and its focus on providing a satisfactory return to all shareholders 2.50 each approved! Satisfactory return to all shareholders were treated in the same manner from a CGT event (... The share consolidation will be a dividend for income tax Assessment Act 1997 unless otherwise indicated return capital. Will make a determination under either 56 this Ruling are to the credit of Wesfarmers ' share account. 975-300 ( 3 ) accordingly, the Wesfarmers shareholders who hold their on... Must adjust the cost base method in all future events affecting these.... Be undertaken without reducing balance sheet flexibility materially different from the ending of the capital proceeds from the of... Distributed by public, unedited and unaltered, on 08 December 2021 500 ), or $ 12.75 share. That had reached a taxing point ( i.e if the return of capital that! Liability relating to the return of capital will be provided with a capital or. ( excluding appendixes ) is not a dividend 7 of a diversified portfolio of businesses unedited and,...
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