Media Updates, page-6429

David Hearn, Chair, a2m mentioned he had to sell shares to meet a tax bill. Shorters see this as insider selling and as a negative indicator.

I thought I might mention many of us have to sell shares to meet tax bills.

The way my tax regime is set up if my shares exceed purchase price at 30/6 annually then I have to pay tax on them whether I have sold them or NOT.

I.e. the tax department requires me to pay tax on un-realised (paper) profits.

Clearly if I have not sold, and the tax bill comes in, I have to sell shares to pay the bill.

The moral of the story is don't always see directors selling shares as a negative, its often a cash flow management issue.

Don't let shorters' use this as a reason for devaluing the company. its more rubbish.