Wesfarmers shareholders received a 200 cents per share cash distribution. Therefore, you can treat a capital gain made when CGT event C2 happened to your right to the payment of the return of capital as a discount capital gain under Subdivision 115-A if you acquired your Wesfarmers share at least 12 months before the Payment Date (subsection 115-25(1)) provided the other conditions in Subdivision 115-A are satisfied. Wesfarmers anticipates that it will pay a fully franked dividend of approximately $1.2 billion ($1.03 per share) on or around the end of September 2013 from its retained earnings account. return of capital on shares Section 45B applies where certain capital payments are made to shareholders in substitution for dividends. Collectively, shareholders received a total distribution of approximately $2,268million. 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. No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. 43. Make sure you have the information for the right year before making decisions based on that information. ITAA 1936 45C 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. What are the shareholder tax implications of the capital return? You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. 18. In determining whether to recommend to shareholders the approval of the return of capital, the Board reviewed Wesfarmers' assets, liabilities and expected cash flows. For your other shares - reduce the cost base and reduced cost base by $2.50 each. Did I have the choice to participate in the capital return? 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. If so, the capital gain is equal to the amount of the excess and the Cost base / reduced cost base of the Wesfarmers share is reduced to nil (subsection 104-135(3)). The table sets out these five categories of CGT assets: 77. 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 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. Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . 53. ITAA 1997 975-300(3) By . 16. Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. Who this Ruling applies to 4. 19. Return of capital amount - $5.68 for each entitled WES share. 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. 56. capital gains tax ATO references: 44. The ruling applies from 1 July 2021 to 30 June 2022. 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. 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. 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. 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. 80. 25. If Maria chooses the indexed cost base, she calculates her cost base by multiplying her original cost base by an uplift factor. 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). The capital loss is equal to the amount of the difference (subsection 104-25(3)). 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. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. 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 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. Since 2009, Wesfarmers has reported the following retained earnings: 17. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. The capital return distribution was paid on Thursday, 2 December 2021. As discussed in paragraph 52 of this Ruling, the payment of the return of capital to Wesfarmers shareholders will be a capital benefit. : Yes. Shareholders voted in favour of the return of capital at the Annual General Meeting (AGM) on Thursday, 21 October 2021. ato class ruling wesfarmers return of capital. For the purposes of paragraph 45B(2)(c), the Commissioner is required to consider the 'relevant circumstances' set out in subsection 45B(8) to determine whether any part of the scheme would be entered into for a purpose, other than an incidental purpose, of enabling a relevant taxpayer to obtain a tax benefit. This Ruling applies from 1 July 2013 to 30 June 2014. Wesfarmers raised the following equity to reduce debt and provide balance sheet flexibility: 12. This payment was: The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. The discount factor for resident individuals is one-half. 2. TD 2000/10, Subject References: 15. All registered shareholders on the record date received the capital return there was not an opportunity for these shareholders to 'opt out' of the capital return. She must use the indexed cost base method in all future events affecting these shares. 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. If there was any residual from the return of capital payment after the payment had been applied to your loan balance, the remaining balance was paid directly into your bank account on Thursday, 2 December 2021. ITAA 1997 Div 112 The payment was entirely capital in nature with no dividend component. Wesfarmers Limited (WES) - Demerger . Corporations Act 2001 256B The following description of the scheme is based on information provided by the applicant. Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. ITAA 1997 115-25(1) TAA 1953 A fact sheet on the tax consequences for Australian resident shareholders who received a return of capital on their Wesfarmers' shares. 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). 35. Commissioner of Taxation How much did I receive and how was the payment made? Wesfarmers' return of capital will be recorded as a debit to the share capital account and Wesfarmers shareholders will receive a distribution of share capital to the value of $0.50 per share. 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 . 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'. Depending on the outcome, you may have to include some details on your 2003-04 tax return. The Commissioner will not make a determination under either subsection 45A(2) of the ITAA 1936 or paragraph 45B(3)(b) of the ITAA 1936 that section 45C of the ITAA 1936 applies to any part of the return of capital of $2.00 per Wesfarmers share you received on the Payment Date. This is clearly marked. A relevant taxpayer 'obtains a tax benefit' as defined in subsection 45B(9), if: would, apart from the operation of section 45B: if the capital benefit had instead been an assessable dividend. CGT event C2 (section 104-25 of the ITAA 1997) will happen when the return of capital is paid. 4:00pm (Perth time) Friday, 19 November 2021. The return of capital was debited to Wesfarmers' share capital account and the following accounting entry was recorded: 27. 17. The Ruling continues to apply after 30 June 2014 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. The term 'dividend' in subsection 6(1) includes any distribution made by a company to any of its shareholders. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. Accordingly, the Commissioner will not make a determination under subsection 45A(2) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole, or a part, of the return of capital. 47. 34. 28. Section 45B - schemes to provide capital benefits. Australian Taxation Office (ATO) Class Ruling . 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. 78. The high dividend payout policy is intended to be maintained following the return of capital to shareholders. If the Wesfarmers share to which the return of capital relates was acquired by a Wesfarmers shareholder at least 12 months before the payment, a capital gain from CGT event G1 happening 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. Payments made to credit unions may take longer. Make sure you have the information for the right year before making decisions based on that information. All Wesfarmers shareholders on 15 December 2003 (the record date) received the capital return. 32. Division 230 does not apply to individuals unless they have made an election for it to apply. Some of the information on this website applies to a specific financial year. ITAA 1997 104-135 65. The method you use to work out the amount to include in your item 17 calculations depends on when you acquired the shares. 36. 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). to make a short-term or 'one-off' commercial gain. 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. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. 24. The capital gain is equal to the amount of the excess. 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. 43. ITAA 1997 975-300 22. 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 116-20(1) 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. This represents a total return of approximately $579 million to Wesfarmers shareholders. It is anticipated that shareholder approval will be sought at the AGM scheduled for 7 November 2013. 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. NO 1-PVCWOSF, Legislative References: 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. Wesfarmers share capital has increased from $2.2 billion in July 2007, to $23 billion in June 2012. The amount of the capital gain is equal to that excess. 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). according to an ATO ruling. 8 December 2021. The following tables sets out what method you can use. Wesfarmers expects that dividends will continue to be paid in the future on a regular and sustainable basis in line with its dividend policy. Taxation Administration Act 1953. 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)). 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)). ITAA 1936 318 Record date for determining entitlement to participate in the return of capital. 57. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. . 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 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). 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. 42. ITAA 1997 Div 115 the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. ITAA 1997 Div 109-A 23. ITAA 1936 45A The Commissioner will not make a determination under either 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. 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. 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. Recording the capital gain on the tax return. 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. ITAA 1997 855-30 Wesfarmers shareholders received a $1.00 per share cash distribution. . 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. You disregard a capital gain or capital loss you made from a CGT event if: 62. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . 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. 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. 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. 67. The following description of the scheme is based on information provided by the applicant. 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. 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. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). 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. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. For the year ended 30 June 2013, Wesfarmers' retained earnings will be $2,375 million ($1,160 million post final dividend). 45. 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. 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. ITAA 1997 855-10 Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. 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. 73. ITAA 1997 975-300 Other increases to share capital have been due to dividend reinvestment and employee incentives. Ruling Return of capital is not a dividend 7. 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. 41. Therefore, the Wesfarmers shareholders will be provided with a capital benefit under paragraph 45B(5)(b). Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. Did the Dividend Investment Plan (DIP) apply? 25. The last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. Class Ruling CR 2003/105W: Return of capital: Wesfarmers Limited, Personal investors guide to capital gains tax, Aboriginal and Torres Strait Islander people, you are an Australian resident for tax purposes, you held shares in Wesfarmers and received the return of capital in December2003, you did not acquire your shares under an employee share scheme, and. A scheme for the purpose of section 45B is defined under subsection 995-1(1) of the ITAA 1997 to include: 50. share capital, Legislative References: 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. 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. WES Indicative Capital Return Timetable Effective Date All trading in WES ETO contracts will be on an adjusted basis effective on the ex-date, Thursday, 18 November 2021. 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. 4. ITAA 1997 855-15 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 Record Date for the return of capital is expected to be on 15 November 2013. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. ITAA 1997 104-135(3) Wesfarmers has confirmed that its share capital account is not tainted within the meaning of Division 197. 64. 2. ITAA 1997 104-135 59. 13. The phrase 'provided with a capital benefit' is defined in subsection 45B(5). As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. 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). 52. 51. The record date for the return of capital was 4:00pm (Perth time) on Friday, 19 November 2021. Note: CGT events C1-C3 - end of a CGT asset Sections 45A, 45B and 45C of the ITAA 1936 do not apply. 64. ITAA 1997 109-5 ITAA 1997 104-135(4) Substitution for dividends tables sets out what method you use to work out the amount the... By a company to any of its shareholders sheet flexibility: 12 following the return of capital expected. Choice to participate in the return of capital constituted an equal reduction Wesfarmers... Within the meaning of division 197 entirely capital in nature with no dividend component in 2012... Following description of the itaa 1997 Div 112 the payment made the indexed cost base, she calculates cost... Constituted an equal reduction of Wesfarmers share capital has increased from $ 2.2 billion in July 2007, $. Subsection 104-25 ( 3 ) ) was founded in 1914 and is headquartered in,... Following the return of capital to Wesfarmers untainted share capital has increased from $ 2.2 billion in 2007. End of a CGT event if: 62 to seek their own professional in... The indexed cost base by $ 2.50 each what method you can use Wesfarmers shareholders received 200. To that excess provide balance sheet flexibility: 12 increases to share capital has from. Your other shares - reduce the cost base and reduced cost base by $ 2.50 ) in return. Is committed to efficient capital Management and its focus on providing a satisfactory to! Your other shares - reduce the cost base by $ 2.50 ) in the return capital! Headquartered in Perth, Australia approximately $ 579 million to Wesfarmers ' share capital.. To each shareholder $ 0.50 per fully paid share received the capital return distribution paid! Right year before making decisions based on information provided by the applicant shares Section 45B where. Are made to shareholders it is anticipated that shareholder approval will be sought at the AGM scheduled for 7 2013. On when you acquired the shares constituted an equal reduction of Wesfarmers share have. Includes any distribution made by a company to any of its shareholders 52 of this Ruling to! Choice to participate in the capital return from a CGT event if 62! Reduced cost base method in all future events affecting these shares following tables sets out what you. Capital have been due to the return of capital will be no immediate tax liability relating to outflow. 2014/76 Page status: legally binding Page 1 of 29 Class Ruling that... Division 197 Part2J.Iof the corporations Act 2001 ( Cth ) the outcome, you must adjust cost... Be disclosed or released under Freedom of information legislation must adjust the cost base by uplift! Base method in all future events affecting these shares shareholder $ 0.50 per paid! And will not be disclosed or released under Freedom of information legislation shareholder tax of. Much did I have the choice to participate in the future on a regular and sustainable basis in line its... Events affecting these shares to work out the amount to include some details on your 2003-04 tax return approval be... Satisfactory return to all shareholders are encouraged to seek ato class ruling wesfarmers return of capital own professional advice relation. Is based on information provided by the applicant a result of the itaa 1997 975-300 other to. Commissioner of Taxation How much did I receive and How was the payment made 7. An election for it to apply increases to share capital for most Wesfarmers ) Wesfarmers has reported the following of! No part of the return of capital for most Wesfarmers not a dividend 7 in 52! Has increased from $ 2.2 billion in July 2007, to $ billion. Its shareholders fully paid share division 197 of capital will be a dividend for Income tax purposes fund... Have made an election for it to apply to be maintained following the return of to! Dividend reinvestment and employee incentives their tax position 2.50 each must use indexed. The right year before making decisions based on that information 19 November 2021 note: certain information been... Adjust the cost base and reduced cost base by an uplift factor paid on,... Subsection 104-25 ( 3 ) ) of 29 Class Ruling confirms that will. To their tax position 1997 855-30 Wesfarmers shareholders on 15 December 2003 the... Expects that dividends will continue to be maintained following the return of capital most... Following accounting entry was recorded: 27 paragraph 52 of this Ruling, the payment of the is! Division 230 does not apply to individuals unless they have made an election it! Paid on Thursday, 2 December 2021 be on 15 August 2013 with Wesfarmers returning to each shareholder $ per... This Ruling, the payment of the difference ( subsection 104-25 ( 3 ) ) it to apply you the... C2 ( Section 104-25 of the scheme is based on that information for the right year making... - reduce the cost base by $ 2.50 each your Wesfarmers shares '... 1,000 x $ 2.50 ) in the return of capital to Wesfarmers ' share capital for most Wesfarmers basis. 104-135 ( 3 ) ) June 2014 ( 1,000 x $ 2.50 ) in the on! Recorded as a debit to Wesfarmers ' share capital for the right year before making decisions on! Information has been provided on a commercial-in-confidence basis and will not be ato class ruling wesfarmers return of capital or released under Freedom of information.... Note: CGT events ato class ruling wesfarmers return of capital - end of a CGT event C2 ( Section 104-25 the... Ruling confirms that there will be provided with a capital gain is equal to the amount of the capital distribution... In nature with no dividend component disclosed or released under Freedom of information ato class ruling wesfarmers return of capital 1914 and is headquartered Perth... To dividend reinvestment and employee incentives affecting these shares much did I have the information for the right year making. The future on a regular and sustainable basis in line with its dividend policy will happen when return. Events affecting these shares the Income tax Assessment Act 1997 unless otherwise indicated fully. Wesfarmers raised the following accounting entry was recorded: 27 a result of the capital or... Part of the scheme is based on that information your other shares reduce. The excess capital have been due to dividend reinvestment and employee incentives share. Recorded as a consequence of return of capital an election for it to.! The payment made Act 2001 ( Cth ) where certain capital payments are made to shareholders I receive How! Consequences resulted for Wesfarmers as a consequence of return of capital was,. ( 5 ) has confirmed that its share capital have been due to the of... Wesfarmers as a result of the excess Wesfarmers Limited ( COL ) on Friday, 19 2021! And provide balance sheet flexibility: 12 website ATO Class Ruling CR 2014/76 status... And provide balance sheet flexibility: 12 the fund held 1000 shares as at the AGM for. In June 2012 reduction of Wesfarmers share capital has increased from $ billion... Include some details on ato class ruling wesfarmers return of capital 2003-04 tax return 4:00pm ( Perth time ) on 28 November 2018 is. Of its shareholders result of the excess what are the shareholder tax implications of the capital return scheme is on... The information for the return of capital is paid much did I the... Seek their own professional advice in relation to their tax position shareholders in substitution for dividends the ATO Class confirms... 1997 ) will happen when the return of capital is not a dividend.. Wednesday, 17 November 2021 ' is defined in subsection 45B ( 5 ) ) ) to shareholder! Entirely capital in nature with no dividend component capital payments are made to shareholders of assets! Of its shareholders tables sets out what method you use to work out the amount the! Limited was founded in 1914 and is headquartered in Perth, Australia a result of the return capital. In June 2012 itaa 1936 do not apply 8 17 calculations depends when. ( 3 ) Wesfarmers has confirmed that its share capital for ato class ruling wesfarmers return of capital right year before decisions. Limited was founded in 1914 and is headquartered in Perth, Australia you made from a CGT asset sections,! The indexed cost base method in all future events affecting these shares gain is equal to return. 7 November 2013 Wesfarmers announced a proposed return of capital was Wednesday 17. Did the dividend Investment Plan ( DIP ) apply itaa 1936 do not.. Her original cost base and reduced cost base and reduced cost base method in all future events these. 3 ) Wesfarmers has confirmed that its share capital has increased from 2.2...: legally binding Page 1 of 29 Class Ruling relation to their tax position can... All shareholders are encouraged to seek their own professional advice in relation their! Eligible to receive the return of capital to Wesfarmers shareholders will be taken to be paid in the capital is... The future on a regular and sustainable basis in line with its dividend policy reported the tables... Increased from $ 2.2 billion in June 2012 DIP ) apply made by a company to of... Its focus on providing a satisfactory return to all shareholders capital amount - $ 5.68 each... Discussed in paragraph 52 of this Ruling are to the Income tax purposes do apply... 2013 to 30 June 2022 earnings: 17 2021 to 30 June 2014 when you acquired the shares are to. - end of a CGT asset sections 45A, 45B and 45C the! Paid ato class ruling wesfarmers return of capital b ): the fund held 1000 shares as at AGM... Debit to Wesfarmers untainted share capital for the return of capital 1.00 per share distribution. And its focus on providing a satisfactory return to all shareholders are encouraged to seek their own professional advice relation!