Why large discount to NTA?, page-26

hey
yes, u r correct re DRP vs $$ being the same for tax.
but the WHF example by jazir was for a special tax situation ....and that was the point of that post
on the issue of LIC capital gains deductions .......prolly cleared up from the above posts but will quote this from yours:
"that you avoid the CGT"
to be clear the LIC capital gains discount is not a tax amount that the shareholder pays. It has NOTHING to do with selling the shares and paying CGT on profits. it is a clawback of tax already paid by the coy that puts a little bit extra money into the coffers of the investor once the tax return is done, as it is a deduction for free. it shows up on ur dividend record page as just a random piece of information. it is not paid at dividend time into ur bank but comes out in the wash at tax time when u claim the deduction amount (it does not show up in the prefill area of tax - you have to add the deduction urself). it is sorta like a franking credit refund in the way it just gets churned through the tax return.

LIC capital gains deductions usually only occurs every couple of years or so.

hope still helping