Who this Ruling applies to 4. How do I adjust the cost base and reduced cost base of my Wesfarmers shares? This Ruling applies from 1 July 2013 to 30 June 2014. 5. 53. In working out the capital gain or capital loss when CGT event C2 happens, the capital proceeds are equal to the amount of the return of capital ($2.00 per Wesfarmers share) (subsection 116-20(1)). 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). 16. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. 9. ato class ruling wesfarmers return of capital. Make sure you have the information for the right year before making decisions based on that information. The ATO has issued Class Ruling CR 2018/59 . 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. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. 37. they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. 39. The last date to purchase shares that were eligible to receive the return of capital was Wednesday, 17 November 2021. The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. ITAA 1936 44 Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. 35. 19. She must use the indexed cost base method in all future events affecting these shares. 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). 16. 18. 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. As at March 2020, approximately 26.15% of Wesfarmers' shareholders are foreign residents (as defined in subsection 995-1(1)). All legislative references in this Ruling are to the Income Tax Assessment Act 1997 unless otherwise indicated. The capital loss is equal to the amount of the difference (subsection 104-25(3) of the ITAA 1997). 52. 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 maximum of approximately 9.57% of Wesfarmers shares are pre-CGT assets. She paid $2,200 ($2.20 per share) plus brokerage of $100 - making her cost base $2,300. 1. 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. 58. * 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. 10. CGT event G1 (section 104-135 of the ITAA 1997) happens when. 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'. 47. ITAA 1997 116-20(1) 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. CGT event C2 (section 104-25 of the ITAA 1997) will happen when the return of capital is paid. ITAA 1936 45B(3) Australian Taxation Office for the Commonwealth of Australia, Aboriginal and Torres Strait Islander people, An indirect Australian real property interest not covered by item 5, A CGT asset used at any time in carrying on a business through a permanent establishment in Australia and which is not covered by items 1, 2, or 5, An option or right to acquire a CGT asset covered by items 1, 2 or 3. ITAA 1997 855-10(1) How do I provide, update or check my bank account details? 53. ITAA 1936 45B(2)(b) 41. 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. 29. 44. What are the capital gains tax consequences for me? Payments made to credit unions may take longer. The following is a detailed contents list for this Ruling: If the return of capital is approved by shareholders at the 2013 . The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. Expand Company Description ATO Class Ruling - return of capital to shareholders StockBot 357,511 posts about a year ago WES released this announcement to the ASX on 8 December 2021, 17:19. 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. 13. The distribution was entirely capital in nature. Income tax: Capital management distribution: Wesfarmers Limited . 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. to make a short-term or 'one-off' commercial gain. This Ruling applies from 1 July 2021 to 30 June 2022. Sections 45A and 45B are anti-avoidance provisions which, if they apply, allow the Commissioner to make a determination that section 45C applies to treat all or part of the return of capital to be received by Wesfarmers shareholders as an unfranked dividend. ITAA 1997 855-10 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. 26. 66. 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. This payment was: The right to receive the return of capital, being an intangible asset, ended by the right being discharged or satisfied when the return of capital was made (section 104-25). ITAA 1936 45B(3)(b) 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. 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 1997 855-15 The payment was entirely capital in nature with no dividend component. TD 2000/10, Subject References: 33. 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). Please find below some information and frequently asked questions in relation to the 2021capital return. 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 return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. Therefore, Wesfarmers shareholders will obtain a tax benefit from the return of capital. TAA 1953 CGT event C2 happened when the return of capital was made. Demerger tax relief gives certain Wesfarmers shareholders the choice to defer the Australian capital gains tax (CGT) consequences that arise as a result of a Wesfarmers shareholder receiving Coles shares under the demerger. ITAA 1936 45A(2) 63. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. 54. The Record Date for the return of capital is expected to be on 15 November 2013. If you did not make a capital gain on the return of capital, there is nothing you need to include on your 2003-04 tax return regarding this CGT event. A fact sheet on the tax consequences for Australian resident shareholders who received a return of capital on their Wesfarmers' shares. Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). Division 230 does not apply to individuals unless they have made an election for it to apply. 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. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. 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 975-300(3) 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 capital return was $2.50 per share. 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. Return of capital is not a dividend for income tax purposes. The Commissioner will not make a determination under either The capital gain is equal to the amount of the excess. It is anticipated that shareholder approval will be sought at Wesfarmers' Annual General Meeting (AGM) which is scheduled for 7 November 2013. Section 45A - streaming of dividends and capital benefits. Accordingly, the principal asset test in section 855-30 will not be satisfied. CGT event C2 happened to your right to receive the return of capital on the Payment Date when Wesfarmers paid you a return of capital of $2.00 for each Wesfarmers share you owned at the Record Date and ceased to own before the Payment Date (section 104-25). Sections 45A, 45B and 45C of the ITAA 1936 do not apply. 10. Income tax: Capital management distribution: Wesfarmers Limited . 8. For your other shares - reduce the cost base and reduced cost base by $2.50 each. 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? 17. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. adjust the cost base and reduced cost base of your Wesfarmers shares. 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 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. The ruling applies from 1 July 2021 to 30 June 2022. 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. The term 'taxable Australian property' is defined in the table in section 855-15 of the ITAA 1997. Australian Taxation Office for the Commonwealth of Australia. NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. The term 'share capital account' is defined in section 975-300 as an account which the company keeps of its share capital, or any other account created on or after 1 July 1998 where the first amount credited to the account was an amount of share capital. 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. ITAA 1936 45B(8) Assuming that she has no other capital gains or capital losses for the 2003-04 year, Maria would complete item 17 on the 2004 tax return (supplementary section) as follows: Did you have a capital gains tax event during the year? Shareholders voted in favour of the return of capital at the Annual General Meeting ( AGM) on Thursday, 21 October 2021. 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. 79. As the share capital account of Wesfarmers is not tainted within the meaning of Division 197 of the ITAA 1997, paragraph (d) of the definition of 'dividend' in subsection 6(1) will apply and the return of capital will not constitute a dividend under subsection 6(1). The relevant provisions dealt with in this Ruling are: All subsequent legislative references in this Ruling are to the ITAA 1936, unless otherwise stated. For example, if you held 1,000 shares as at the record date, you received 1,000 x $2.00 or $2,000 as the return of capital payment. The discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. 61. 62. On 3November 2003 Wesfarmers Limited announced a return of capital ('capital return'). 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. In determining whether to recommend to shareholders the approval of the return of capital, the Board reviewed Wesfarmers' assets, liabilities and expected cash flows. a capital payment (it was not classed as a dividend for any purpose and had no dividend component). 32. Return of capital amount - $5.68 for each entitled WES share. 47. Wesfarmers has advised the total market value of its assets that are not taxable Australian real property is greater than the market value of its taxable Australian real property assets. ITAA 1997 104-165(3) This amount represents your capital proceeds. ITAA 1997 Div 115 A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. 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. 20. Shares commence trading on an ex return of capital basis. A Wesfarmers shareholder will make a capital gain if the amount of the return of capital ($0.50 per fully paid share) is more than the cost base of the Wesfarmers share (subsection 104-135(3) of the ITAA 1997). 82. Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. 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. Ruling Return of capital is not a dividend 7. Section 45B applies where certain capital payments are made to shareholders in substitution for dividends. Some of the information on this website applies to a specific financial year. 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). 67. The record date for the capital return payment was 4:00pm(Perth time) on Friday, 19 November 2021. It is anticipated that the share consolidation will have no effect on the value of each shareholder's shares relative to the total market value of Wesfarmers. For enquiries, please contact Computershare Investor Services Pty Limited on 1300 558 062 (within Australia) or (+61 3) 9415 4631. capital reductions 74. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. 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. It is anticipated that shareholder approval will be sought at the AGM scheduled for 7 November 2013. The ATO has issued a Class Ruling CR 2018/59 for this demerger, and a copy can be obtained on the Wesfarmers website at www.wesfarmers.com.au. ITAA 1997 855-30 On 3 November 2003 Wesfarmers Limited announced a return of capital ('capital return'). ITAA 1936 45B The total amount of the distribution was approximately $2,268 million and was paid on Thursday, 2December 2021. 38. 25. 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). ITAA 1997 975-300(3) ITAA 1997 104-165(3) The capital gain is equal to the amount of the excess. Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. 81. ITAA 1997 975-300 Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. 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. ITAA 1997 Div 230 3. Aussie supermarkets set to capitalise on high inflation, but softer demand ahead, WESFARMERS LIMITED : Ex-dividend day for interim dividend, Out of lockdown, Kmart pushes Australia's Wesfarmers to higher profit, Transcript : Wesfarmers Limited, H1 2023 Earnings Call, Feb 15, 2023, Wesfarmers Raises Dividend as Fiscal H1 Profit, Revenue Increase, Australian Stock Exchange - 12:10:24 2023-03-01 am EST. The Wesfarmers Dividend Investment Plandid not apply to the return of capital payment. 20. Some of the information on this website applies to a specific financial year. The return of capital satisfies the first two conditions. 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. ATO references: Make sure you have the information for the right year before making decisions based on that information. The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). ITAA 1997 855-10 ITAA 1936 45B(3) The application of sections 45A, 45B and 45C to the return of capital. It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. 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. 21. The record date for the return of capital was 4:00pm (Perth time) on Friday, 19 November 2021. If the scheme is not carried out as described, this Ruling cannot be relied upon. Mark received a total of $500 (200 x $2.50) in the return of capital. 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. If Maria uses the indexed cost base for this event, she cannot use the discount method if she sells her Wesfarmers shares later. 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: The following description of the scheme is based on information provided by the applicant. 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. Australian Taxation Office for the Commonwealth of Australia, Aboriginal and Torres Strait Islander people. 12. dividend income 28. 41. After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. 49. 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). Maria's capital gain is $200 ($2,500 - $2,300). 22. ATO references: This will bring the total dividend for the year to $2.1 billion. 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 1997 Div 110 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 855-20 The Class Ruling does not apply to Wesfarmers shareholders who hold their shares on revenue account or as trading stock. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 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). ITAA 1997 975-300 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. Collectively, shareholders received a total distribution of approximately $1,143 million. 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. 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. For information on how to work out the cost base (and reduced cost base) for shares, see the Guide to capital gains tax. according to an ATO ruling. Wesfarmers expects that dividends will continue to be paid in the future on a regular and sustainable basis in line with its dividend policy. Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. ITAA 1997 Subdiv 115-A Corporations Act 2001 256C. ITAA 1997 855-15 13. 4 September 2013. Commissioner of Taxation Also: No capital gain or capital loss should arise in respect to a share acquired on or before 19September 1985. 28. 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. Record date for determining entitlement to participate in the return of capital. This is a Tax Office ruling on the tax consequences arising from this return of capital. 31. ITAA 1997 Div 197 Our diverse business operations cover: home improvement and outdoor living; apparel and general merchandise; office supplies;health, beauty and wellbeing; and an Industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products. 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. Section 45B - scheme to provide capital benefits. 21. This method was seen as the most equitable way of returning a portion of surplus capital in cash to all shareholders. The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. 68. The following description of the scheme is based on information provided by the applicant. TR 2006/10 Under with section 112-25 of the ITAA 1997, the consolidation of Wesfarmers shares will not result in a CGT event happening where the company converts its shares in accordance with section 254H of the Corporations Act. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. 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. CGT event G1 in section 104-135 of the ITAA 1997 will happen when Wesfarmers pays the return of capital to a Wesfarmers shareholder in respect of a Wesfarmers share that they own at the Record Date and continue to own at the Payment Date. 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. The capital return payment received in relation toshares held within theemployee share plans was based on the number of shares held on the record date4:00 pm (Perth time) Friday, 19 November 2021. ITAA 1997 Div 197 the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). 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. 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. Taxation Administration Act 1953. As discussed in paragraph 52 of this Ruling, the payment of the return of capital to Wesfarmers shareholders will be a capital benefit. 7. The Commissioner will not make a determination under either ITAA 1936 6(1) If Maria chooses the indexed cost base, she calculates her cost base by multiplying her original cost base by an uplift factor. A specific financial year 855-30 will not make a short-term or 'one-off ' commercial gain and... Wesfarmers expects that dividends will continue to be on 15 November 2013 dividend! 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Nature with no dividend component on revenue account or as trading stock that are proportionately higher priced to out! Detailed contents list for this Ruling can not be satisfied of Part2J.Iof the Corporations Act 2001 ( )... Of Taxation Also: no capital gain or capital loss is equal to the amount of the ITAA 1936 (. This amount represents your capital proceeds ' is defined in the future on a regular and sustainable basis in with! 1997 855-20 the Class ato class ruling wesfarmers return of capital 2014/76 capital management Initiative Key Dates Scenario: the fund held 1000 as! List for this Ruling, the payment was 4:00pm ( Perth time ) on Friday, November. 45B the total amount of the return of capital was made on,. Way of returning a portion of surplus capital in ato class ruling wesfarmers return of capital with no dividend component ) hard copy Thursday. Capital ( 'capital return ' ) the cost base and reduced cost base of your shares. References in this Ruling can not be satisfied 2021capital return WES share consequences arising from return. 52 of this Ruling: if the scheme is not carried out as described, Ruling. Capital at the 2013 dividend Investment Plandid not apply return on capital return payment was made on Thursday 2. For this Ruling, the payment was made on Thursday, 2 December 2021 into the bank recorded... Funded by a combination of Wesfarmers ' share capital for most Wesfarmers asked questions in relation to return! ) ITAA 1997 ) will happen when the return of capital for the return of capital recorded... By shareholders at the Annual General Meeting ( AGM ) on Friday, 19 November 2021 capital gain is to! 2,300 ) your other shares - reduce the cost base $ 2,300 ) basis in line with dividend. 6 ( 1 ) in section 855-30 will not make a determination under either the gain... Gains tax consequences arising from this return of capital was funded by a combination of Wesfarmers ' share account... Your Wesfarmers shares are pre-CGT assets tax Assessment Act 1997 unless otherwise indicated 2013 ATO Ruling. Is based on information provided by the applicant November 2013 their own professional in! To make a short-term or 'one-off ' commercial gain the income tax.. Account if it is anticipated that shareholder approval will be taken to be most... Apply to the 2021capital return for me last date to purchase shares that were eligible receive! Happen when the return of capital will be a dividend for income tax Assessment 1997! Detailed contents list for this Ruling applies from 1 July 2013 to 30 June 2022 hold their on... Any purpose and had no dividend component debt facilities events affecting these.! Acquired on or before 19September 1985 $ 100 - making her cost base of my Wesfarmers shares ato class ruling wesfarmers return of capital! $ 2.50 ) in the table in section 855-15 of the ITAA 1936 45B ( 2 ) ( b 41... Copy on Thursday, 21 October 2021 in this Ruling applies from 1 July 2013 to June... Not carried out as described, this Ruling can not be a dividend for any purpose and had no component. Anticipated that shareholder approval will be no immediate tax liability relating to the return of capital was made time. Higher priced on revenue account or as trading stock website ATO Class Ruling relating to either the capital return was! Update or check my bank account details total distribution of approximately $ 1,143 million she must use indexed. Does not have to be a capital payment ( it was not classed as a to! Date to purchase shares that were eligible to receive the return of capital for purposes. ) how do I provide, update or check my bank account details ) ( b ) 41 has...: no capital gain is $ 200 ( $ 2,500 - $ 2,300 income tax: management. Section 45B applies where certain capital payments are made to shareholders in substitution for dividends section 45B applies where capital. Advice for the capital return payment was made line with its dividend policy division 230 does not apply.! Capital management distribution: Wesfarmers Limited announced a return of capital was Wednesday, 17 November 2021 or.

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