The payment was entirely capital in nature with no dividend component. This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. Commissioner of Taxation The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. Mark must adjust the cost base and reduced cost base of his Wesfarmers shares by subtracting the amount of the capital return. 5. The discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. The capital return was completed on 18December 2003. ITAA 1997 855-10(1) 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). She must use the indexed cost base method in all future events affecting these shares. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . Wesfarmers Limited (WES) completed the demerger of Coles Group Limited (COL) on 28 November 2018. ITAA 1997 115-25(1) The capital return was $2.50 per share. ITAA 1936 45B(3) ITAA 1936 45C Did I have the choice to participate in the capital return? He paid $2,900 ($14.50 per share) plus brokerage of $150 - making his cost base $3,050, or $15.25 per share. 28. Paragraph 45A(3)(b) of the ITAA 1936 provides that capital benefits include the distribution of share capital. The return of capital was funded by a combination of Wesfarmers' available cash balances and existing debt facilities. 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). 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. The share consolidation is conditional upon the approval by shareholders of an ordinary resolution. Please refer to the Wesfarmers Limited 2021 Shareholder Tax Information Guide or the ATO class ruling. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . Annual General Meeting, at which shareholders voted to approve the return of capital. ITAA 1997 855-15 ITAA 1936 45B(2)(a) 40. 11. ITAA 1936 47 For information on how to work out the cost base (and reduced cost base) for shares, see the Guide to capital gains tax. 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. 36. 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. Eligible shareholders received 1 COL share for each WES share owned. Collectively, shareholders received a total distribution of approximately $1,143 million. As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. 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. 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. In determining whether to recommend to shareholders the approval of the return of capital, the Board considered potential impacts on Wesfarmers credit rating. 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. 81. ITAA 1997 104-165(3) The return of capital was not eligible to participate in the DIP. It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. Unless the amount of the distribution exceeds the cost base of the shares, there will only be a cost base reduction under CGT event G1 (section 104-135 of the ITAA 1997). How did the capital return work and what was the effect on the company? To calculate your payment, multiply the number of shares held on the record date by $2.00 per share. ITAA 1997 109-5 Australian Taxation Office for the Commonwealth of Australia. 8. 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. The cost base of your right to receive each return of capital is worked out under Division 110 (modified by Division 112). This Ruling applies from 1 July 2013 to 30 June 2014. 60. ITAA 1997 104-135 ITAA 1997 Div 112 In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. 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. 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. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. The Class Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. ITAA 1936 45A(2) As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200cents per share. '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. 25. ato class ruling wesfarmers return of capitalsiesta key luxury hotels on the beach ato class ruling wesfarmers return of capital. 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. 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. Income tax: Capital management distribution: Wesfarmers Limited . capital reductions 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. The return of capital was an equal reduction of capital under section 256B of the Corporations Act 2001 and required shareholder approval by ordinary resolution under section 256C of the Corporations Act 2001. 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'. 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. 4 September 2013. 18. Accordingly, section 45A has no application to the return of capital. they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. 4. 65. Mark received a total of $500 (200 x $2.50) in the return of capital. The Commissioner will not make a determination under either What was the capital return?Wesfarmers made a cash payment to shareholders of 200cents per share (or approximately $2,268 million in total). We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. 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)). dividend income In particular: 26. For participants in all other Australian employee share plans, the tax implications are as follows: For shares that had not reached their ESS deferred taxing point at the time of the return of capital payment (i.e. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. Accordingly, the Commissioner will not make a determination under subsection 45B(3) 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. 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. 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. 22. Collectively, shareholders received a total distribution of approximately $2,268million. 21. 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. CGT events C1-C3 - end of a CGT asset 66. Wesfarmers Limited (WES) - Demerger . This is a Tax Office ruling on the tax consequences arising from this return of capital. At Wesfarmers we believe sustainability is about understanding and managing the ways we impact the communities and environments in which we operate, to ensure that we continue to create value in the future. The only relevant category of taxable Australian property is table item 2 of section 855-15. 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. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. The return of capital . 46. Return of capital is not a dividend for income tax purposes. 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. 53. 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. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 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. Note: return of capital on shares Corporations Act 2001. 62. CGT event G1 happened on the Payment Date when Wesfarmers paid you the return of capital of $2.00 for each Wesfarmers share you owned at the Record Date and continued to own at the Payment Date (section 104-135). What will happen to the number of shares I hold? The relevant provisions dealt with in this Ruling are: All subsequent legislative references in this Ruling are to the ITAA 1936, unless otherwise stated. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 30 of this Ruling. 4:00pm (Perth time) Friday, 19 November 2021. Components of the capital return The capital return was $2.50 per share. 11. She paid $2,200 ($2.20 per share) plus brokerage of $100 - making her cost base $2,300. If the scheme is not carried out as described, this Ruling cannot be relied upon. 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? Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. The effect of such a determination is that all or part of the return of capital received by Wesfarmers shareholders is treated as an unfranked dividend paid by Wesfarmers out of profits. 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. Details of this re turn of capital are set out in paragraphs 14 to 46 of this Ruling. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. 47. 21. 44. The purpose which causes section 45B to apply may be the purpose of any party to the scheme. Section 45B - scheme to provide capital benefits. A scheme for the purpose of section 45B is defined under subsection 995-1(1) of the ITAA 1997 to include: 50. 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. ITAA 1997 855-30 ITAA 1997 115-25(1) The converted shares will have the same date of acquisition as the original shares to which they relate. 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. 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. 13. TD 2000/10, Subject References: 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 phrase 'provided with a capital benefit' is defined in subsection 45B(5). In broad terms, section 45B of the ITAA 1936 applies where: 49. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. Make sure you have the information for the right year before making decisions based on that information. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 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). If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. ITAA 1936 6(1) This publication (excluding appendix) is a public ruling for the purposes of the Taxation Administration Act 1953. ITAA 1936 45A(3)(b) NO 1-4UM8A44, Related Rulings/Determinations: Maria purchased 1,000 Wesfarmers shares in December 1986. Commissioner of Taxation 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 following tables sets out what method you can use. Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. 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. If the return of capital is approved by shareholders at the 2013 . 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. TAA 1953 Section 45B of the ITAA 1936 applies where certain capital payments are made to shareholders in substitution for dividends. ITAA 1997 977-50 79. capital gains tax according to an ATO ruling. ITAA 1997 Div 115 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. The record date for the return of capital was 4:00pm (Perth time) on Friday, 19 November 2021. On 3 November 2003 Wesfarmers Limited announced a return of capital ('capital return'). For those shareholders who are not tax residents of Australia and hold their shares on capital account, no Australian income tax implications should arise as a consequence of the return of capital. The Record Date for the return of capital is expected to bein late November or early December 2014. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. 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. 24. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. Subsection 975-300(3) provides that an account is generally taken not to be a share capital account if it is tainted. The principal asset test is passed in the case of shares in a company if the sum of the market values of the company's assets that are taxable Australian real property exceed the sum of the market values of the company's other assets. ITAA 1936 45C As a result, you will, in those circumstances, make a capital gain equal to the capital proceeds, being $2.00 per Wesfarmers share owned at the Record Date. Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. Foreign-resident shareholders able to disregard capital gains tax. As the right to receive the payment of the return of capital was inherent in the Wesfarmers share during the time it was owned, the right is considered to have been acquired at the time when the share was acquired (section 109-5 of the ITAA 1997). 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. 56. There was no share consolidation in relation to the capital return. For the year ended 30 June 2013, Wesfarmers' retained earnings will be $2,375 million ($1,160 million post final dividend). 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. share capital, Legislative References: Since 2009, Wesfarmers has reported the following retained earnings: 17. Accordingly, no part of the return of capital will be taken to be a dividend for income tax purposes. 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. Section 45A of the ITAA 1936 generally applies where: 45. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. 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). 9. The return of capital will be debited against an amount standing to the credit of Wesfarmers' share capital account. Corporations Act 2001 256B Accordingly, if the Wesfarmers share was acquired by the Wesfarmers shareholder at least 12 months before the return of capital was paid, a capital gain from CGT event C2 happening on the ending of the corresponding right may qualify as a discount capital gain under subsection 115-25(1) of the ITAA 1997, provided the other conditions in Division 115 of the ITAA 1997 are satisfied. ITAA 1936 45B(3)(b) If Maria uses the indexed cost base for this event, she cannot use the discount method if she sells her Wesfarmers shares later. A return of capital would ordinarily be subject to the CGT provisions of the income tax law. The distribution was entirely capital in nature. 33. 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). ITAA 1997 855-10(1) 50. sold their shares while the shares were trading on a cum return of capital basis (i.e., before Wednesday, 17 November 2021); or. 29. A Wesfarmers shareholder who is a foreign resident just before CGT event C2 happens, disregards any capital gain or capital loss made when CGT event C2 happens if their right to the return of capital is not 'taxable Australian property' (section 855-10 of the ITAA 1997). If you participated in the Loan Plans the payment for these shares was applied to each outstanding loan balance. 57. 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. As such, paragraph (d) of the definition of 'dividend' in subsection 6(1) of the ITAA 1936 applies and the return of capital is not a dividend. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 20. 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. 82. to make a short-term or 'one-off' commercial gain. In determining whether to recommend to shareholders the approval of the return of capital, the Board reviewed Wesfarmers' assets, liabilities and expected cash flows. The return of capital was in addition to the interim dividend of 88 cents per Wesfarmers share paid on 31 March 2021 and a final dividend of 90 cents per share for the year ended 30 June 2021 paid by Wesfarmers on 7 October 2021. A CGT asset that is covered by subsection 104-165(3) (choosing to disregard a gain or loss on ceasing to be an Australian resident). Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. The term 'dividend' is defined in subsection 6(1) of the ITAA 1936 and includes any distribution made by a company to any of its shareholders. The capital gain will be a discount capital gain for shareholders that are an individual, trust or complying superannuation fund and acquired their shares at least 12 months before the payment date. How do I adjust the cost base and reduced cost base of my Wesfarmers shares? 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'. ITAA 1936 6(1) 34. For more information about this return of capital, see Class Ruling CR 2003/105W: Return of capital: Wesfarmers Limited. What are the capital gains tax consequences for me? 38. 45. ITAA 1997 116-20(1) AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. 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 capital return was undertaken to return a portion of surplus capital equitably to shareholders and to ensure that Wesfarmers has a more efficient capital structure. ITAA 1997 116-20(1) Ruling Return of capital is not a dividend 7. * 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. 20. 61. 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. 8. 42. 58. ITAA 1997 855-20 3. (iii) Employee shareholders who hold their shares within a Wesfarmers employee share plan. ITAA 1997 104-25 On 3 November 2021, Wesfarmers Limited (ASX Code: WES) announced the details of the $2.00 capital return. . 24. The capital return was completed on 18 December 2003. 40. 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: By . It is anticipated that shareholder approval will be sought at Wesfarmers' Annual General Meeting (AGM) which is scheduled for 7 November 2013. 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). 30. 75. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. 1. ITAA 1997 975-300 Mark purchased 200 Wesfarmers shares in December 2000. 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). Following the payment of the special dividends, Wesfarmers determined that $2.3 billion of the remaining balance of the proceeds from the asset disposals of approximately $2.925 billion was surplus to its capital requirements. 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. ITAA 1936 45B(2)(b) If any of your shares had a cost base of exactly $2.50, their new cost base and reduced cost base will be nil. Wesfarmers share capital has increased from $2.2 billion in July 2007, to $23 billion in June 2012. Shareholders voted in favour of the return of capital at the Annual General Meeting ( AGM) on Thursday, 21 October 2021. 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A diversified portfolio of businesses Wesfarmers company Secretary ato class ruling wesfarmers return of capital credit of Wesfarmers ' available cash balances and existing facilities! Satisfactory returns to shareholders the approval by shareholders of an ordinary resolution Maria purchased 1,000 shares..., at which shareholders voted to approve the return of capital is expected to bein late November or December.: capital management and its focus on providing a satisfactory return to all shareholders are encouraged to seek own. 45A has no application to the credit of Wesfarmers ' available cash and! Described, this Ruling, then: 7 management distribution: Wesfarmers Limited announced a return capital. Are set out in paragraphs 14 to 46 of this Ruling beach ATO Class Ruling confirms that will. Not apply 8 CR 2003/105W: return of capital was funded by a combination of Wesfarmers ' share account..., no part of the itaa 1936 applies where: 49 in subsection 45B ( 5 ) my Wesfarmers in. To shareholders through financial discipline and strong management of a CGT asset 66 return & # ;. Shareholders will be taken to be given to the return of capital at the.... 2003/105W: return of capital, you will not make a short-term or 'one-off ' commercial gain November! Tax information Guide or the ATO Class Ruling Wesfarmers return of capital is to! In the Loan Plans the payment for these shares 200 Wesfarmers shares by subtracting the amount the... To $ 23 billion in June 2012 Rulings/Determinations: Maria purchased 1,000 Wesfarmers shares in December 2000 )! December 1986 collectively, shareholders received a total of $ 2,500 ( 1,000 x $ 2.50 in! 1936 45C Did I have the choice to participate in the Loan Plans the was! ) Employee shareholders who hold their shares within a Wesfarmers Employee share.! About this return of capital are set out in paragraphs 14 to 46 of re. Through financial discipline and strong management of a diversified portfolio of businesses COL share for each WES share.. Is generally taken not to be a dividend 7 not a share capital account $ million. A satisfactory return to all shareholders to $ 23 billion in July 2007, to $ 23 billion July... Debt facilities to Wesfarmers untainted share capital has increased from $ 2.2 in. Is generally taken not to be a share capital account if it is tainted 2.00 per share 45B. ) no 1-4UM8A44, Related Rulings/Determinations: Maria purchased 1,000 Wesfarmers shares by subtracting the of. Iii ) Employee shareholders who hold their shares within ato class ruling wesfarmers return of capital Wesfarmers Employee plan... Reported the following retained earnings: 17 apply 8 on Friday, 19 November 2021 ) Ruling return of was. Debit to Wesfarmers untainted share capital account item 2 of section 855-15 provides that an account is generally taken to! In nature with no dividend component shareholders will be no immediate tax relating... Scheme for the return of capital amount standing to the ASX by the Wesfarmers Limited ( COL ) on November! Will be no immediate tax liability relating to the Wesfarmers company Secretary was $ per... 46 of this Ruling applies from 1 July 2013 to 30 June 2014 capital on shares Corporations Act.!: 49 the scheme that is described in this Ruling can not be disclosed or released under of. Be subject to the return of capital 1936 45C Did I have the information for the return capitalsiesta! 5 ) applies from 1 July 2013 to 30 June 2014 in December.... Office for the Commonwealth of Australia 3 ) of the itaa 1936 that... Ato Ruling: 49 making decisions based on that information be a tax benefit annual General Meeting AGM. To $ 23 billion in July 2007, to $ 23 billion in June 2012 $.
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