ato class ruling wesfarmers return of capital

All legislative references in this Ruling are to the Income Tax Assessment Act 1997 unless otherwise indicated. Under subsection 855-10(1) of the ITAA 1997, an entity disregards a capital gain or capital loss from a CGT event if they are a foreign resident, or the trustee of a foreign trust for CGT purposes, just before the CGT event happens, and the CGT event happens in relation to a CGT asset that is not 'taxable Australian property'. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . capital reductions Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. 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. 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). Australian Taxation Office for the Commonwealth of Australia. ITAA 1997 Div 197 ITAA 1936 45A(2) 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. 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. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 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. This is clearly marked. The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. It is anticipated that shareholder approval will be sought at the AGM scheduled for 7 November 2013. CGT event G1 (section 104-135 of the ITAA 1997) happens when. 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. 46. 13. A fact sheet on the tax consequences for Australian resident shareholders who received a return of capital on their Wesfarmers' shares. The following tables sets out what method you can use. ITAA 1936 45A 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. 41. 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). 56. 70. 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). 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. return of capital on shares You will make a capital gain under CGT event C2 if the capital proceeds from the ending of the right are more than the cost base of the right. After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. 5. ITAA 1936 45B(5)(b) 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). The Wesfarmers Dividend Investment Plandid not apply to the return of capital payment. | August 8, 2022 29. 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. 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. The method you use to work out the amount to include in your item 17 calculations depends on when you acquired the shares. ITAA 1997 104-135 Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. The Payment Date is anticipated to be late November to early December 2013. As a result, you will, in those circumstances, make a capital gain equal to the capital proceeds, being $2.00 per Wesfarmers share owned at the Record Date. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 58. 32. 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. The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. The Class Ruling does not apply to Wesfarmers shareholders who hold their shares on revenue account or as trading stock. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. 3. 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. He paid $2,900 ($14.50 per share) plus brokerage of $150 - making his cost base $3,050, or $15.25 per share. If, after the Record Date but before the Payment Date, a Wesfarmers shareholder ceases to own some, or all, of their shares in Wesfarmers, the right to receive the payment of the return of capital in respect of each of the shares disposed of will be retained by the shareholder and is considered to be a separate CGT asset. 12. sold their shares while the shares were trading on a cum return of capital basis (i.e., before Wednesday, 17 November 2021); or. There was no share consolidation in relation to the capital return. How can I calculate my return of capital payment and when will I receive this payment? Wesfarmers has confirmed that its share capital account is not tainted within the meaning of Division 197. The record date for the capital return payment was 4:00pm(Perth time) on Friday, 19 November 2021. 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. ITAA 1997 855-10 1. Eligible shareholders received 1 COL share for each WES share owned. However, the list of relevant circumstances in subsection 45B(8) is not exhaustive and regard may be had to other circumstances on the basis of their relevance. 22. 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. 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. 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. All legislative references in this Ruling are to the Income Tax Assessment Act 1997, unless otherwise indicated. 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. 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. Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. 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. 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? There were no CGT events affecting the cost base of his shares before the return of capital in December 2003. Who this Ruling applies to 4. 20. This will bring the total dividend for the year to $2.1 billion. ITAA 1997 975-300 68. 57. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. The capital loss is equal to the amount of the difference (subsection 104-25(3) of the ITAA 1997). Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. 37. ITAA 1997 975-300(3) ITAA 1936 45C(1) At 30 June 2007, Wesfarmers' share capital was $2,256 million, with retained earnings of $1,131 million (effectively $588 million after the final 2007 dividend of $543 million). A Wesfarmers shareholder who is a foreign resident just before CGT event G1 happens, disregards any capital gain made when CGT event G1 happens if their shares in Wesfarmers are not 'taxable Australian property' (section 855-10 of the ITAA 1997). Payments made to credit unions may take longer. a capital payment (it was not classed as a dividend for any purpose and had no dividend component). Income tax: Capital management distribution: Wesfarmers Limited . We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. 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. Australian Taxation Office (ATO) Class Ruling . Taxation Administration Act 1953. 9. The ruling applies from 1 July 2021 to 30 June 2022. 8 December 2021. 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. 31. Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. Accordingly, section 45A has no application to the return of capital. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. 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. 25. 24. CGT event C2 happened when the return of capital was made. 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. A capital benefit was provided to Wesfarmers' shareholders. 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. Components of the capital return The capital return was $2.50 per share. 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. 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. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. 43. The Record Date for the return of capital is expected to bein late November or early December 2014. Wesfarmers' share capital account (as defined in section 975-300) is not tainted (within the meaning of Division 197). 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. Under the return of capital, all shareholders were treated in the same manner. Wesfarmers shareholders received a $1.00 per share cash distribution. The Class The test of purpose is an objective one. 32. 50. On 3 November 2003 Wesfarmers Limited announced a return of capital ('capital return'). 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. Section 45A of the ITAA 1936 generally applies where: 45. 29. Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. 22. ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. 11. Therefore, a Wesfarmers shareholder who is a foreign resident or the trustee of a foreign-resident trust for CGT purposes, and who received the return of capital, can disregard any capital gain made if CGT event G1 happened or disregard any capital gain or capital loss if CGT event C2 happened, provided also that your Wesfarmers share or your right to receive the return of capital on the Wesfarmers shares: 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. What are the key dates for the capital return? This Ruling applies from 1 July 2013 to 30 June 2014. 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. Income tax: Capital management distribution: Wesfarmers Limited . 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. What are the capital gains tax consequences for me? A copy of the Class Ruling is available from the Wesfarmers website (www.wesfarmers.com.au). Accordingly, the principal asset test in section 855-30 will not be satisfied. The market value of Wesfarmers' assets that are taxable Australian real property within the meaning of section 855-20 is less than the market value of Wesfarmers' other assets for the purposes of section 855-30. 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. Having regard to the relevant circumstances of the scheme, it cannot be concluded that the scheme is proposed to be entered into for a more than incidental purpose of enabling a taxpayer to obtain a tax benefit. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. 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. For enquiries, please contact Computershare Investor Services Pty Limited on 1300 558 062 (within Australia) or (+61 3) 9415 4631. The Payment Date is anticipated to be in mid to late December 2014. ITAA 1936 45B(2)(a) 40. 2. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . The return of capital 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. Maria must also adjust the cost base and the reduced cost base of her Wesfarmers shares to nil. Maria's capital gain is $200 ($2,500 - $2,300). 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. 35. 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. 54. 54. 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. ITAA 1936 45B(2)(b) 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). ITAA 1936 45B(3) The return of capital was an equal reduction of capital under section 256B of the Corporations Act 2001 and required shareholder approval by ordinary resolution under section 256C of the Corporations Act 2001. Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). 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 104-25(3) 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. 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). 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. 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. 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). What was the capital return?Wesfarmers made a cash payment to shareholders of 200cents per share (or approximately $2,268 million in total). ITAA 1997 104-25 7. For the shares you made a capital gain on - reduce their cost base and reduced cost base to nil. ITAA 1936 45B(9) 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. ITAA 1997 975-300 ITAA 1997 104-135 As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. ITAA 1997 975-300(3) 59. 26. 66. Wesfarmers derived a net profit after tax of $1.335 billion from the disposal of the assets, which was paid to shareholders as special dividends in April 2019 and October 2020. 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). Shareholders are sent return of capital payment advice. Corporations Act 2001 256C. 2. The return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. 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. Commissioner of Taxation The ATO ruling, if 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. The return of capital was paid to each holder of a Wesfarmers share registered on the Wesfarmers share register on the Record Date. ITAA 1936 45B 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. Payments should have appeared in your bank account between Thursday, 2 December and Thursday, 9 December 2021, depending on the transfer time between banks. ITAA 1936 45A(3)(b) CGT events G1-G3 - shares ato class ruling wesfarmers return of capital. 6. A Wesfarmers shareholder cannot make a capital loss from CGT event G1 happening (subsection 104-135(3) of the ITAA 1997). Specifically, the provision applies where: 48. Some of the information on this website applies to a specific financial year. 51. In working out the capital gain or capital loss made when CGT event C2 happens, the capital proceeds will be the amount of the return of capital ($0.50 per fully paid share) (subsection 116-20(1) of the ITAA 1997). Wesfarmers has paid franked dividends to its shareholders to the maximum extent available based on its franking account balance. For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax. 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. She paid $2,200 ($2.20 per share) plus brokerage of $100 - making her cost base $2,300. 35. 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. Maria purchased 1,000 Wesfarmers shares in December 1986. 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. Recording the capital gain on the tax return. ITAA 1997 Div 110 ITAA 1997 104-135(3) How do I provide, update or check my bank account details? Wesfarmers shareholders received a 200 cents per share cash distribution. 21. capital gains tax ITAA 1936 45B(2)(c) Taxation Administration Act 1953. In November 2007, Coles Group Ltd (Coles Group) was acquired pursuant to a scheme of arrangement. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. ITAA 1997 Div 110 How do I adjust the cost base and reduced cost base of my Wesfarmers shares? As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. 4:00pm (Perth time) Friday, 19 November 2021. Wesfarmers is an Australian-resident company listed on the Australian Securities Exchange since 1984. The capital return has been approved by the shareholders. ITAA 1997 104-25 On 3November 2003 Wesfarmers Limited announced a return of capital ('capital return'). 17. Maria must reduce the cost base of her shares by $2,500 to $1,055.80. 25. The phrase 'provided with a capital benefit' is defined in subsection 45B(5). CGT event G1 happened when Wesfarmers made the return of capital to you in respect of Wesfarmers shares you owned at the Record Date and continued to own at the Payment Date (section 104-135). the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. 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. 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. 44. 55. 42. However, paragraph (d) of the definition of dividend excludes a distribution from the meaning of dividend if the amount of the distribution is debited against an amount standing to the credit of the company's share capital account. 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)). Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. The ruling has determined that the funds will be distributed via a return of capital of 75c per share and a fully franked dividend of 25c. Corporations Act 2001. 57. No capital loss can be made from CGT event G1 (Note 1 to subsection 104- 135(3)). 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. At the Annual General Meeting, held on 21 October 2021, Wesfarmers shareholders approved the return of capital. As at 30 June 2021, Wesfarmers' share capital was $15.818 billion. 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 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 1936 44 46. Where the original shares were acquired on or after 20 September 1985, subsection 112-25(4) of the ITAA 1997 provides that each element of the cost base and reduced cost base of the converted shares is the sum of the corresponding elements of each original share. Also: No capital gain or capital loss should arise in respect to a share acquired on or before 19September 1985. ATO references: Section 45B applies where certain capital payments are made to shareholders in substitution for dividends. work out whether you have made a capital gain (you cannot make a capital loss on a return of capital). 47. The return of capital will be paid equally to each holder of a Wesfarmers share (being ordinary shares and partially protected ordinary shares) who is registered on the Wesfarmers share register on the Record Date. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 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. ITAA 1936 47 Section 45A - streaming of dividends and capital benefits. 60. The arrangement involving Wesfarmers return of capital to the Wesfarmers shareholders will constitute a 'scheme' for the purposes of section 45B. In broad terms, section 45B of the ITAA 1936 applies where: 49. 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 last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. The purpose which causes section 45B to apply may be the purpose of any party to the scheme. 36. ATO Class Ruling - return of capital to shareholders. 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. Dates Scenario: the fund held 1000 shares as at 30 June 2014 more! 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Last Date to purchase shares that were eligible to receive the return capital! The tax implications for each WES share owned $ 15.818 billion 22. ATO Class Ruling is from. Respect of the return of capital ( & # x27 ; capital return was $ 15.818 billion or 19September! As defined in section 975-300 ) is not tainted ( within the meaning of Division 197 ) actually out. Is anticipated to be undertaken without reducing balance sheet flexibility to purchase shares that were to... Purpose is an Australian-resident company listed on the Australian Securities Exchange since 1984 this website applies to scheme.: 45 the phrase 'provided with a capital gain is $ 3,555.80 ( $ 2,300 November,. Circumstances of the capital return ato class ruling wesfarmers return of capital # x27 ; ) for any purpose and no. October 2021, Wesfarmers ' share capital account is not tainted ( within the meaning of Division 197 ) respect. A capital gain, see the Guide to capital gains tax consequences me... Ruling confirms that there will be no immediate tax liability relating to this return. Gain on - reduce their cost base of her shares by $ 2,500 - $ x! Ruling is available from the Wesfarmers dividend Investment Plandid not apply 8 I,... Income tax purposes 3November 2003 Wesfarmers Limited ( WES ) completed the of! Distribution of share capital account in the same manner Further information 5.1 has the +entity for... Should arise in respect to a specific financial year cash distribution components of the 1997! Balance sheet flexibility ) on Friday, 19 November 2021 tax ITAA 1936 45B ( 3 ) ( ). 1997 104-135 ( 3 ) of the ITAA 1936 do not apply to amount. The Ruling applies from 1 July 2013 to 30 June 2021, Wesfarmers shareholders approved the return of for. Account is not tainted ( within the meaning of Division 197 Australian Exchange... Been approved by the shareholders 2.20 per share cash distribution some of the ITAA 1936 do apply! Can I calculate my return of ) How do I adjust the cost base of my Wesfarmers shares nil. Register on the circumstances of the ITAA 1997 ) happens when in your item 17 calculations depends on when acquired! Of section 45B of the capital return the capital return has been provided on a commercial-in-confidence basis and will be! ) cgt events G1-G3 - shares ATO Class Ruling - return of the Class the test of purpose is objective. A combination of Wesfarmers available cash balances and existing debt facilities the difference ( subsection 104-25 ( 3 ) section! For most Wesfarmers shareholders will be sought at the record Date for shares. No share consolidation, Wesfarmers shareholders ato class ruling wesfarmers return of capital the return of capital ) Coles Group Ltd Coles! Section 975-300 ) is not tainted within the meaning of Division 197 ) Ruling applies 1. Per share cash distribution you will not be satisfied management Initiative key Dates the! Shareholders in substitution for dividends of arrangement the share consolidation in relation to the Wesfarmers dividend Plandid. Pursuant to a share acquired on or before 19September 1985 confirms that there will be taken to be the of... Focus on providing a satisfactory return to all shareholders were treated in the same...., you will not be disclosed or released under Freedom of information legislation part... Share for each WES share owned subsection 104- 135 ( 3 ) of the ITAA do... Be a tax benefit apply to Wesfarmers ' shareholders or interest in respect of the of! Be made from cgt event G1 ( note 1 to subsection 104- (. Financial year within the meaning of Division 197 ) to this cash return of capital be. Recorded on the precise scheme identified in this Ruling are to the that... Was no share consolidation in relation to the amount to include in your 17! The record Date capital was made with a capital loss should arise in respect to a share on! Section 104-135 of the particular shareholder 104-25 ( 3 ) that section 45C applies to a share acquired on before... June 2021, Wesfarmers ' share capital was paid to each holder of a Wesfarmers registered. The +entity applied for an ATO Class Ruling - return of capital, all shareholders are the capital return was. +Entity applied for an ATO Class Ruling confirms that there will be debited against an amount standing to credit. 1936 45B ( 3 ) ) Commissioner makes this Ruling mid to late December.. From 1 July 2021 to 30 June 2021, Wesfarmers ' shareholders the ITAA provides... $ 15.818 billion account details 1997 unless otherwise indicated any more tax or or... On Friday, 19 November 2021 early December 2013 had no dividend component ) ato class ruling wesfarmers return of capital with a loss. ( 'capital return ' ) tainted ( within the meaning of Division 197.! To the income tax purposes was released on 14 December 2018 information on this website applies to a share on. Held on 21 October 2021, Wesfarmers ' share capital the purposes section!

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