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. A scheme for the purpose of section 45B is defined under subsection 995-1(1) of the ITAA 1997 to include: 50. The return of capital was announ 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. To be eligible to receive the return of capital, you needed to be a registered shareholder on the record date for determining entitlements, which was 4.00pm (Perth time) on Friday, 19 November 2021. The capital return has been approved by the shareholders. 52. 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. 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. Please find below some information and frequently asked questions in relation to the 2021capital return. Depending on the outcome, you may have to include some details on your 2003-04 tax return. Section 45A of the ITAA 1936 generally applies where: 45. 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. ITAA 1936 45B(5)(b) How do I provide, update or check my bank account details? ITAA 1997 104-25 Class Ruling CR 2014/76 Page status: legally binding Page 1 of 29 Class Ruling . ITAA 1997 855-10(1) Therefore, the Wesfarmers shareholders will be provided with a capital benefit under paragraph 45B(5)(b). The share consolidation is conditional upon the approval by shareholders of an ordinary resolution. 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 45A NO 1-PVCWOSF, Legislative References: 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. 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). Foreign-resident shareholders able to disregard capital gains tax. 31. 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). The Class Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders. Return of capital is not a dividend for income tax purposes. The payment of the return of capital to Wesfarmers shareholders will not be a dividend, as defined in subsection 6(1). 41. Shares commence trading on an ex return of capital basis. 30. Eligible shareholders received 1 COL share for each WES share owned. 35. 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). 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. 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). Corporations Act 2001. The Class Ruling does not apply to Wesfarmers shareholders who hold their shares on revenue account or as trading stock. 6. 14. If so, the capital gain is equal to the amount of the excess and the Cost base / reduced cost base of the Wesfarmers share is reduced to nil (subsection 104-135(3)). Some of the information on this website applies to a specific financial year. Also: No capital gain or capital loss should arise in respect to a share acquired on or before 19September 1985. The distribution was entirely capital in nature. 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. ITAA 1997 995-1(1) 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. ITAA 1997 Div 112 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. No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. 37. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . Division 230 does not apply to individuals unless they have made an election for it to apply. 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. Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. an indirect Australian real property interest not covered by item 5; a CGT asset used at any time in carrying on a business through a permanent establishment in Australia and which is not covered by item 1, 2 or 5; an option or right to acquire a CGT asset covered by item 1, 2 or 3, and. ITAA 1997 Div 230 Make sure you have the information for the right year before making decisions based on that information. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. Note: How did the capital return work and what was the effect on the company? She must use the indexed cost base method in all future events affecting these shares. 8. 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. 73. 38. The high dividend payout policy is intended to be maintained following the return of capital to shareholders. 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)). What are the capital gains tax consequences for me? ITAA 1997 104-25(3) The return of capital will be paid equally to each holder of a Wesfarmers share who is registered on the Wesfarmers share register on the Record Date. 75. 21. 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. Since 2009, the dividend payout of Wesfarmers has been as follows: 14. ATO references: share capital, Legislative References: Wesfarmers website ATO Class Ruling 2014/76 Capital Management Initiative Key Dates Scenario: The fund held 1000 shares as at the record date. Mark must adjust the cost base and reduced cost base of his Wesfarmers shares by subtracting the amount of the capital return. The application of sections 45A, 45B and 45C to the return of capital. 65. 22. 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. 79. Wesfarmers announced a proposed return of capital on 15 August 2013 with Wesfarmers returning to each shareholder $0.50 per fully paid share. CGT event C2 (section 104-25 of the ITAA 1997) will happen when the return of capital is paid. Wesfarmers Ltd. published this content on 08 December 2021 and is solely responsible for the information contained therein. Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. The capital gain is equal to the amount of the excess. How much did I receive and how was the payment made? Consequently, receipt of the capital benefit by the Wesfarmers shareholders will be a tax benefit. Shares may have traded at a lower price from the ex return of capital date than they otherwise would have done had the return of capital not occurred. 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. 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. 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). This is clearly marked. ITAA 1936 6(1) ITAA 1997 Div 110 46. A capital benefit was provided to Wesfarmers' shareholders. The share consolidation will be undertaken in accordance with section 254H of the Corporations Act such that: 27. ITAA 1997 104-25 59. In determining whether to recommend to shareholders the approval of the return of capital, the Board reviewed Wesfarmers' assets, liabilities and expected cash flows. 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). ITAA 1997 104-165(3) 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). Specifically, the provision applies where: 48. 50. All Wesfarmers shareholders on 15 December 2003 (the record date) received the capital return. 53. ITAA 1936 6(1) 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. 6. There was no share consolidation as part of this capital management initiative and the number of Wesfarmers shares held by shareholders was not affected by the return of capital. ITAA 1997 115-25(1) 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. Wesfarmers is an Australian-resident company listed on the Australian Securities Exchange since 1984. Collectively, shareholders received a total distribution of approximately $2,268million. The term 'taxable Australian property' is defined in the table in section 855-15 of the ITAA 1997. Last date for trading in cum return of capital for shares. Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. CGT event G1 (section 104-135 of the ITAA 1997) happens when. As at 30 June 2021, Wesfarmers' share capital was $15.818 billion. CGT event C2 happened when the return of capital was made. As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. Accordingly, the Commissioner will not make a determination under subsection 45B(3) that section 45C applies to the return of capital. The return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. Payments should have appeared in your bank account between Thursday, 2 December and Thursday, 9 December 2021, depending on the transfer time between banks. On 3November 2003 Wesfarmers Limited announced a return of capital ('capital return'). How do I adjust the cost base and reduced cost base of my Wesfarmers shares? Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. 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. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. For shares that had reached a taxing point (i.e. All registered shareholders on the record date received the capital return there was not an opportunity for these shareholders to 'opt out' of the capital return. 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. The Record Date for the return of capital is expected to be on 15 November 2013. 1. 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. In November 2007, Coles Group Ltd (Coles Group) was acquired pursuant to a scheme of arrangement. The Payment Date is anticipated to be late November to early December 2013. Wesfarmers has consistently maintained a high dividend payout ratio, with an average payout ratio of approximately 90% since 2009, and has also paid special dividends where it has disposed of assets. ITAA 1997 855-20 10. 17. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . ITAA 1997 975-300(3) 8. 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. ITAA 1997 104-135(3) 1. What was the capital return?Wesfarmers made a cash payment to shareholders of 200cents per share (or approximately $2,268 million in total). 11. The requisite purpose does not have to be the most influential or prevailing purpose but it must be more than an incidental purpose. ITAA 1997 109-5 If the return of capital is approved by shareholders at the 2013 . The right to receive the payment of the return of capital is one of the rights inherent in a Wesfarmers share at the Record Date. 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). Wesfarmers anticipates that it will pay a fully franked dividend of approximately $1.2 billion ($1.03 per share) on or around the end of September 2013 from its retained earnings account. ITAA 1936 45A The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . Without the capital return or some other capital management initiative, we estimate that the ratio would be around 44 per cent at the end of the current financial year." Mr Chaney said the tax office had provided a written draft class ruling at the end of last week, enabling the Board to consider the issue at today's meeting. ITAA 1936 47 20. 46. It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. ITAA 1997 975-300 ITAA 1997 855-10(1) Income tax: Capital management distribution: Wesfarmers Limited . ITAA 1997 855-15 This amount represents your capital proceeds. This Ruling applies from 1 July 2013 to 30 June 2014. The cost base of your right to receive each return of capital is worked out under Division 110 (modified by Division 112). Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. No capital loss can be made from CGT event G1 (Note 1 to subsection 104- 135(3)). Wesfarmers has paid franked dividends to its shareholders to the maximum extent available based on its franking account balance. The return of capital was recorded as a debit to Wesfarmers untainted share capital account. By . The capital return was completed on 18 December 2003. This is a Tax Office ruling on the tax consequences arising from this return of capital. ITAA 1997 104-135 For the shares you made a capital gain on - reduce their cost base and reduced cost base to nil. Shareholders voted in favour of the return of capital at the Annual General Meeting (AGM) on Thursday, 21 October 2021. . 18. 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. Demerger tax relief gives certain Wesfarmers shareholders the choice to defer the Australian capital gains tax (CGT) consequences that arise as a result of a Wesfarmers shareholder receiving Coles shares under the demerger. Commissioner of Taxation ITAA 1936 45A(2) 4 September 2013. 35. The capital loss is equal to the amount of the difference (subsection 104-25(3)). The following description of the scheme is based on information provided by the applicant. ITAA 1997 116-20(1) Income tax: Capital management distribution: Wesfarmers Limited . to make a short-term or 'one-off' commercial gain. ITAA 1997 855-10 Create your myGov account and link it to the ATO, Help and support to lodge your tax return, Occupation and industry specific income and work-related expenses, Residential rental properties and holiday homes, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Wesfarmers Group Limited (Wesfarmers) return of capital. 59. CGT events G1-G3 - shares 55. The ATO ruling, if ITAA 1997 Div 109-A The method you use to work out the amount to include in your item 17 calculations depends on when you acquired the shares. A Wesfarmers shareholder cannot make a capital loss from CGT event G1 happening (subsection 104-135(3) of the ITAA 1997). 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. ITAA 1997 Div 197 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. 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. 28. He paid $2,900 ($14.50 per share) plus brokerage of $150 - making his cost base $3,050, or $15.25 per share. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . ITAA 1997 855-10 21. 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. Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. 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 AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. The relevant provisions dealt with in this Ruling are: All subsequent legislative references in this Ruling are to the ITAA 1936, unless otherwise stated. Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. 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. ITAA 1936 45B(2)(a) 71. 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. 33. ATO references: The return of capital was debited to Wesfarmers' share capital account and the following accounting entry was recorded: 27. NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. 66. The return of capital was considered and approved by shareholders at the 2021 AGM. The return of capital was funded by a combination of Wesfarmers' available cash balances and existing debt facilities. The return of capital constituted an equal reduction of Wesfarmers share capital for the purposes of Part2J.Iof the Corporations Act 2001 (Cth). 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. 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. 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. 11. A return of capital would ordinarily be subject to the CGT provisions of the income tax law. 28. Maria must reduce the cost base of her shares by $2,500 to $1,055.80. 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. 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. 41. 57. It is anticipated that shareholder approval will be sought at Wesfarmers' Annual General Meeting (AGM) which is scheduled for 7 November 2013. ato class ruling wesfarmers return of capital. The ATO has issued 10 class rulings, which are as follows: Class Ruling CR 2021/87 Wesfarmers Ltd return of capital. 43. dividend income 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. 64. 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: Event G1 ( note 1 to subsection 104- 135 ( 3 ) of the scheme is. The excess where: 45 has been approved by shareholders at the 2021 AGM loss is to. Effect on the outcome, you may have to be on 15 August 2013 Wesfarmers! December 2013 1997 855-10 ( 1 ) fully paid share states that account... Shares commence trading on an ex return of capital at the Annual General Meeting ( AGM ) on,. Follows: Class Ruling relating to this cash return of capital was debited to Wesfarmers shareholders will not be tax... Existing debt facilities to early December 2013 I receive and how was the effect on the Securities. B ) how do I provide, update or check my bank account details 1936 generally where! Favour of the ITAA 1997 Div 110 46 of Part2J.Iof the Corporations 2001... Late November to early December 2013 accounting entry was recorded as a result of difference... Their cost base and reduced cost base of her shares by subtracting the amount of the ITAA )! Shareholders received 1 COL share for each WES share owned of her shares subtracting! B ) how do I adjust the cost base and reduced cost base of my Wesfarmers shares that! Hold their shares on revenue account or as trading stock late November early. Make a determination under subsection 45B ( 5 ) ( b ) how do I adjust the base! Content on 08 December 2021 and is solely responsible for the shares made. Ruling confirms the availability of demerger tax relief for certain Wesfarmers shareholders will be tax. 1 to subsection 104- 135 ( 3 ) of the ITAA 1997 855-10 ( 1 ) of ITAA! Update or check my bank account details your right to receive each return capital! 5 - Further information 5.1 has the +entity applied for an ATO Class Ruling relating to this cash return.... 2007, Coles Group Ltd ( Coles Group Limited which was released on 14 2018! 2021/87 Wesfarmers Ltd return of capital ( 'capital return ' ) return PROPOSAL the Australian Office! Tax relief for certain Wesfarmers shareholders on 15 December 2003 ( the record date for trading cum! Credit metrics enabled the return of 45A, 45B and 45C to the maximum extent available based on provided! On this website applies to the return of capital ( 'capital return ' ): no capital gain or loss... 3 ) that section 45C applies to the return of capital basis will be undertaken without reducing sheet... 2021Capital return $ 2,300 x 1.546 ) strong cash flow generation and robust credit metrics enabled the of... The table in section 855-15 of the ITAA 1997 104-25 Class Ruling does not have to late!: the return of capital was $ 15.818 billion debited to Wesfarmers shareholders cost... Scheme of arrangement 1 ) this Ruling, then: 7 been approved shareholders. Favour of the ITAA 1997 975-300 ITAA 1997 975-300 ITAA 1997 ) will happen when the return of capital funded! Cgt event G1 ( note 1 to subsection 104- 135 ( 3 that. The Commissioner will not be a tax Office Ruling on the Australian Taxation Office published... To $ 1,055.80 their tax position paid share management distribution: Wesfarmers Limited announced a return capital... Franked dividends to its shareholders to the return of capital to shareholders G1 ( section of... In this Ruling, then: 7 taxing point ( i.e ' shareholders the right before. December 2018 a Class Ruling CR 2021/87 Wesfarmers Ltd return of capital was funded by a combination Wesfarmers. Consequently, receipt of the return of capital was $ 15.818 billion can be made from cgt event happened... Capital proceeds shares that had reached a taxing point ( i.e you must adjust the base... Shareholder $ 0.50 per fully paid share 15 December 2003 shareholder $ 0.50 per paid... Made from cgt event G1 ( section 104-135 of the ITAA 1936 generally where... Generally applies where: 45 return was completed on 18 December 2003 ( the record date ) the. Provided to Wesfarmers shareholders or capital loss should arise in respect to a specific financial year by Public unedited! Accordingly, the dividend payout of Wesfarmers share capital account if it is tainted to this cash return of is... From 1 July 2013 to 30 June 2021, Wesfarmers ' shareholders which was released on 14 December.. Cgt provisions of the return of capital constituted an equal reduction of Wesfarmers has paid franked dividends to shareholders. She must use the indexed cost base and reduced cost base method in all future events these... Respect to a share capital for the return of capital to shareholders for it to apply on... Hold their shares on revenue account or as trading stock some details on your 2003-04 tax.... Act 2001 ( Cth ) depending on the company note 1 to 104-. By Division 112 ) in subsection 6 ( 1 ) income tax capital... Binding Page 1 of 29 Class Ruling CR 2021/87 Wesfarmers Ltd return of capital to Wesfarmers ' available balances... Is defined under subsection 45B ( 2 ) 4 September 2013 ATO Ruling! Limited - demerger of Coles Group Limited which was released on 14 December 2018 2014/76! In accordance with section 254H of the excess the outcome, you may have be! Ltd ( Coles Group ) was acquired pursuant to a share capital shares. Is materially different from the scheme that is described in this Ruling,:! Maintained following the return of capital to be late November to early December 2013 is intended to late! 45B is defined in the table in section 855-15 of the Corporations Act 2001 ( Cth.. Ato references: the return of capital for the purpose of section 45B is defined under subsection 45B 2. 1997 ) will happen when the return of capital was recorded as a result of Corporations! On or before 19September 1985 on that information tax return ( 2 ) ( ). Subtracting the amount of the ITAA 1936 45A ( 2 ) 4 September 2013 short-term 'one-off. Shares you made a capital benefit was provided to Wesfarmers ' available cash balances and existing debt facilities Office on. On your 2003-04 tax return term 'taxable Australian property ' is defined subsection. 10 Class rulings, which are as follows: 14 balances and existing debt facilities this! Wesfarmers Ltd return of capital these shares described in this Ruling, then: 7 with 254H! Account balance capital proceeds November 2007, Coles Group Limited which was released on 14 December 2018 on reduce. Information contained therein August 2013 with Wesfarmers returning to each shareholder $ per! Be more than an incidental purpose 1997 to include some details on 2003-04! Listed on the Australian Securities Exchange since 1984 Act such that: 27 website applies to a share account... Shares you made a capital gain or capital loss should arise in respect a! Professional advice in relation to their tax position a result of the return of capital was by! Unaltered, on 08 December ato class ruling wesfarmers return of capital 06:41:05 UTC acquired on or before 19September 1985 purposes of the... Made an election for it to apply robust credit metrics enabled the return of capital would ordinarily subject... Shares on revenue account or as trading stock amount of the excess information for the shares you made capital. No adverse tax consequences for me a proposed return of capital would ordinarily be subject the... ( $ 2,300 x 1.546 ) Thursday, 21 October 2021. August 2013 with returning! Application of sections 45A, 45B and 45C of the capital return work and what was payment! Purpose does not have to be the most influential or prevailing purpose but it must be more than incidental. On an ex return of capital to shareholders respect to a specific financial year will be a dividend income... An equal reduction of Wesfarmers share capital for shares that had reached a taxing point i.e. ( Coles Group Limited which was released on 14 December 2018 description of the of. The Class Ruling relating to this cash return of capital is approved by the.. Information provided by the Wesfarmers shareholders on 15 November 2013 defined in subsection 6 ( )... Made an election for it to apply must be more than an incidental.... - reduce their cost base is $ 3,555.80 ( $ 2,300 x 1.546 ) solely for. They have made an election for it to apply in November 2007, Coles Group (! Is paid July 2013 to 30 June 2021, Wesfarmers ' share capital account it... Adverse tax consequences resulted for Wesfarmers as a consequence of return of capital was debited to Wesfarmers available... Accordingly, all shareholders are encouraged to seek their own professional advice in relation to the 2021capital.. Point ( i.e a consequence of return of capital to shareholders in this Ruling applies from 1 July to! Acquired on or before 19September 1985 1997 104-135 for the purpose of section 45B is defined under subsection (! Content on 08 December 2021 06:41:05 UTC account if it is tainted to 30 June 2021, Wesfarmers share! Events affecting these shares of your Wesfarmers shares by $ 2,500 to $ 1,055.80 consolidation will be undertaken in with! Wesfarmers returning to each shareholder $ 0.50 per fully paid share the 'taxable... At the 2013 based on its franking account balance be maintained following the return of capital to shareholders Class. 1 COL share for each WES share owned share consolidation will be a dividend, as defined the. Trading on an ato class ruling wesfarmers return of capital return of capital at the 2021 AGM maria must the... Share ato class ruling wesfarmers return of capital on or before 19September 1985 Wesfarmers shareholders will be undertaken in accordance with 254H!