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ato class ruling wesfarmers return of capital

Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. The Record Date for the return of capital is expected to bein late November or early December 2014. 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. 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 Ltd. published this content on 08 December 2021 and is solely responsible for the information contained therein. 24. '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. * 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. 12. Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. Return of Capital = $750 Fully Franked Dividend = $250 Units on hand after consolidation: 983 (1000 x 0.9827 - rounded to the next whole number of shares - See Point 25 in the ATO Class Ruling 2014/76 ). The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 32. The phrase 'provided with a capital benefit' is defined in subsection 45B(5). ATO Class Ruling - return of capital to shareholders. ITAA 1997 995-1(1) The Record Date for the return of capital is expected to be on 15 November 2013. 48. according to an ATO ruling. The capital return was completed on 18 December 2003. ITAA 1997 855-10(1) 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. For those employee shareholders who hold their shares within a New Zealand Wesfarmers employee share plan, are tax residents of New Zealand and only work in New Zealand, it is expected the return of capital payment will be treated as dividend income. Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. 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. Bunnings Limited shareholders offered $11.20 for each Bunnings share or $25.80 plus 2 Wesfarmers shares plus 1 Wesfarmers option ($12.50) for every 4 Bunnings shares 6 Nov 1989 Renounceable rights offer - 1 for 7 at a price of $4.25 per share 13 Jan 1989 Share split - each $1.00 share split into 2 x 50 cent shares 22 Apr 1987 40. The high dividend payout policy is intended to be maintained following the return of capital to shareholders. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. 13. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. Who this Ruling applies to 4. ITAA 1997 855-10 ITAA 1997 104-135(3) 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 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 Div 230 Having regard to Wesfarmers strong balance sheet and cash flow generation, together with its wellestablished funding sources and robust credit metrics, the Board was of the opinion that, consistent with Wesfarmers growth strategy, Wesfarmers was able to undertake the return of capital without materially prejudicing its ability to fund new investments, or to take advantage of value accretive opportunities, if they arise. 58. 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). 44. 66. The following is a detailed contents list for this Ruling: 51. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. The share consolidation is conditional upon the approval by shareholders of an ordinary resolution. Taxation Administration Act 1953. 82. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). ITAA 1997 104-135(4) ITAA 1997 104-165(3) Maria purchased 1,000 Wesfarmers shares in December 1986. 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. 22. 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. Will my shares be worth less after the capital return? 26. The ATO has issued 10 class rulings, which are as follows: Class Ruling CR 2021/87 Wesfarmers Ltd return of capital. 10. The question is whether it would be concluded that a person who entered into or carried out the scheme did so for the purpose of obtaining a tax benefit for the relevant taxpayer in respect of the capital benefit. 25. After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. . Wesfarmers shareholders received a 200 cents per share cash distribution. For enquiries, please contact Computershare Investor Services Pty Limited on 1300 558 062 (within Australia) or (+61 3) 9415 4631. 4. Copyright Act 1968 41. Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. 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. 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. The capital gain is equal to the amount of the excess. 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. The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). 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. 69. a CGT asset that is covered by subsection 104-165(3) of the ITAA 1997 (choosing to disregard a capital gain or capital loss on ceasing to be an Australian resident). If Maria chooses the discount method, she calculates her capital gain by subtracting her cost base from the amount she received in the return of capital. 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). The Australian Taxation Office has given Wesfarmers the all-clear to hand over $1.1 billion to shareholders. The return of capital will be debited to Wesfarmers share capital account. The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. 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. Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. 54. 60. Details of this re turn of capital are set out in paragraphs 14 to 46 of this Ruling. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. 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. ITAA 1997 104-135 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. 80. 14. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. 62. 47. ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. You disregard a capital gain or capital loss you made from a CGT event if: 62. 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. ato class ruling wesfarmers return of capital. ATO references: 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). 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. For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax. 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. If you have a New Zealand bank account, the exchange rate that was used to convert the Australian dollar payment into New Zealand dollars was set on the record date. The following tables sets out what method you can use. 3. 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 ruling applies from 1 July 2021 to 30 June 2022. 39. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. Shareholders are sent return of capital payment advice. 43. She must use the indexed cost base method in all future events affecting these shares. (iii) Employee shareholders who hold their shares within a Wesfarmers employee share plan. 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. A Wesfarmers shareholder who is a foreign resident or the trustee of a foreign-resident trust for capital gains tax (CGT) purposes, and received the return of capital, can disregard any capital gain made if CGT event G1 happened or disregard any capital gain or capital loss if CGT event C2 happened under section 855-10, provided also that your Wesfarmers share or your right to receive the return of capital on the Wesfarmers shares: 15. Annual General Meeting, at which shareholders voted to approve the return of capital. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. ITAA 1997 104-165(3) A capital benefit was provided to Wesfarmers' shareholders. 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'. 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. ITAA 1997 855-10(1) ITAA 1936 44(1) 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. 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). 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. Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. 54. 50. Some of the information on this website applies to a specific financial year. capital gains tax 16. 23. 65. Australian Taxation Office for the Commonwealth of Australia. Payments made to credit unions may take longer. The capital return on your shares is a capital gain tax event that may have resulted in a capital gain for you. Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). 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. It states that a person is provided with a capital benefit if: 52. 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. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. Ruling Return of capital is not a dividend 7. Shareholders who did not provide the share registry with their bank account details, may complete a paper Direct Credit Payment Form, which is available from Wesfarmers share registry, Computershare Investor Services Pty Limited, or provide their details online to Computershare at www.computershare.com.au/easyupdate/wes. Wesfarmers 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. Section 855-15 sets out the categories of CGT assets that are taxable Australian property: 63. The total amount of the distribution was approximately $2,268 million and was paid on Thursday, 2December 2021. You calculate your capital gain using the: Indexed cost base or discount method, whichever gives you the better result*, On or after 21 September 1999 and before 15December 2002, Discount method (after applying any capital losses - including unapplied capital losses from previous years). 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. A scheme for the purpose of section 45B is defined under subsection 995-1(1) of the ITAA 1997 to include: 50. 53. 68. 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. ITAA 1997 975-300(3) The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. Section 45A applies in circumstances where capital benefits are streamed to certain shareholders (the advantaged shareholders) who derive a greater benefit from the receipt of capital and it is reasonable to assume that the other shareholders (the disadvantaged shareholders) have received or will receive dividends. 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. 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. 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. 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Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. The Record Date for the return of capital is expected to bein late November or early December 2014. 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. 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 Ltd. published this content on 08 December 2021 and is solely responsible for the information contained therein. 24. '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. * 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. 12. Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. Return of Capital = $750 Fully Franked Dividend = $250 Units on hand after consolidation: 983 (1000 x 0.9827 - rounded to the next whole number of shares - See Point 25 in the ATO Class Ruling 2014/76 ). The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 32. The phrase 'provided with a capital benefit' is defined in subsection 45B(5). ATO Class Ruling - return of capital to shareholders. ITAA 1997 995-1(1) The Record Date for the return of capital is expected to be on 15 November 2013. 48. according to an ATO ruling. The capital return was completed on 18 December 2003. ITAA 1997 855-10(1) 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. For those employee shareholders who hold their shares within a New Zealand Wesfarmers employee share plan, are tax residents of New Zealand and only work in New Zealand, it is expected the return of capital payment will be treated as dividend income. Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. 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. Bunnings Limited shareholders offered $11.20 for each Bunnings share or $25.80 plus 2 Wesfarmers shares plus 1 Wesfarmers option ($12.50) for every 4 Bunnings shares 6 Nov 1989 Renounceable rights offer - 1 for 7 at a price of $4.25 per share 13 Jan 1989 Share split - each $1.00 share split into 2 x 50 cent shares 22 Apr 1987 40. The high dividend payout policy is intended to be maintained following the return of capital to shareholders. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. 13. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. Who this Ruling applies to 4. ITAA 1997 855-10 ITAA 1997 104-135(3) 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 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 Div 230 Having regard to Wesfarmers strong balance sheet and cash flow generation, together with its wellestablished funding sources and robust credit metrics, the Board was of the opinion that, consistent with Wesfarmers growth strategy, Wesfarmers was able to undertake the return of capital without materially prejudicing its ability to fund new investments, or to take advantage of value accretive opportunities, if they arise. 58. 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). 44. 66. The following is a detailed contents list for this Ruling: 51. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. The share consolidation is conditional upon the approval by shareholders of an ordinary resolution. Taxation Administration Act 1953. 82. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). ITAA 1997 104-135(4) ITAA 1997 104-165(3) Maria purchased 1,000 Wesfarmers shares in December 1986. 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. 22. 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. Will my shares be worth less after the capital return? 26. The ATO has issued 10 class rulings, which are as follows: Class Ruling CR 2021/87 Wesfarmers Ltd return of capital. 10. The question is whether it would be concluded that a person who entered into or carried out the scheme did so for the purpose of obtaining a tax benefit for the relevant taxpayer in respect of the capital benefit. 25. After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. . Wesfarmers shareholders received a 200 cents per share cash distribution. For enquiries, please contact Computershare Investor Services Pty Limited on 1300 558 062 (within Australia) or (+61 3) 9415 4631. 4. Copyright Act 1968 41. Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. 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. 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. The capital gain is equal to the amount of the excess. 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. The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). 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. 69. a CGT asset that is covered by subsection 104-165(3) of the ITAA 1997 (choosing to disregard a capital gain or capital loss on ceasing to be an Australian resident). If Maria chooses the discount method, she calculates her capital gain by subtracting her cost base from the amount she received in the return of capital. 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). The Australian Taxation Office has given Wesfarmers the all-clear to hand over $1.1 billion to shareholders. The return of capital will be debited to Wesfarmers share capital account. The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. 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. Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. 54. 60. Details of this re turn of capital are set out in paragraphs 14 to 46 of this Ruling. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. 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. ITAA 1997 104-135 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. 80. 14. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. 62. 47. ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. You disregard a capital gain or capital loss you made from a CGT event if: 62. 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. ato class ruling wesfarmers return of capital. ATO references: 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). 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. For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax. 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. If you have a New Zealand bank account, the exchange rate that was used to convert the Australian dollar payment into New Zealand dollars was set on the record date. The following tables sets out what method you can use. 3. 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 ruling applies from 1 July 2021 to 30 June 2022. 39. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. Shareholders are sent return of capital payment advice. 43. She must use the indexed cost base method in all future events affecting these shares. (iii) Employee shareholders who hold their shares within a Wesfarmers employee share plan. 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. A Wesfarmers shareholder who is a foreign resident or the trustee of a foreign-resident trust for capital gains tax (CGT) purposes, and received the return of capital, can disregard any capital gain made if CGT event G1 happened or disregard any capital gain or capital loss if CGT event C2 happened under section 855-10, provided also that your Wesfarmers share or your right to receive the return of capital on the Wesfarmers shares: 15. Annual General Meeting, at which shareholders voted to approve the return of capital. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. ITAA 1997 104-165(3) A capital benefit was provided to Wesfarmers' shareholders. 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'. 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. ITAA 1997 855-10(1) ITAA 1936 44(1) 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. 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). 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. Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. 54. 50. Some of the information on this website applies to a specific financial year. capital gains tax 16. 23. 65. Australian Taxation Office for the Commonwealth of Australia. Payments made to credit unions may take longer. The capital return on your shares is a capital gain tax event that may have resulted in a capital gain for you. Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). 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. It states that a person is provided with a capital benefit if: 52. 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. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. Ruling Return of capital is not a dividend 7. Shareholders who did not provide the share registry with their bank account details, may complete a paper Direct Credit Payment Form, which is available from Wesfarmers share registry, Computershare Investor Services Pty Limited, or provide their details online to Computershare at www.computershare.com.au/easyupdate/wes. Wesfarmers 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. Section 855-15 sets out the categories of CGT assets that are taxable Australian property: 63. The total amount of the distribution was approximately $2,268 million and was paid on Thursday, 2December 2021. You calculate your capital gain using the: Indexed cost base or discount method, whichever gives you the better result*, On or after 21 September 1999 and before 15December 2002, Discount method (after applying any capital losses - including unapplied capital losses from previous years). 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. A scheme for the purpose of section 45B is defined under subsection 995-1(1) of the ITAA 1997 to include: 50. 53. 68. 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. ITAA 1997 975-300(3) The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. Section 45A applies in circumstances where capital benefits are streamed to certain shareholders (the advantaged shareholders) who derive a greater benefit from the receipt of capital and it is reasonable to assume that the other shareholders (the disadvantaged shareholders) have received or will receive dividends. 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. 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. 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. 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