Ann: CBA announces $6 billion off-market share buy-back, page-20

Hi Bomah,
We crossed posts in the night.
"I understand the tax treatment is based on the true market value not the discounted buyback price''.
No , for capital purposes , you would be generating a capital loss [$ 60 dollars minus $21.66] , which may have benefits if you have other capital gains which are a problem [ especially those on assets held less than one year which dont get the discount].
The rest is dividend , which you will pay tax on at your marginal rate [ keeping mind you pay tax on the grossed up value of the dividend]

''Am I correct in thinking the off market buyback is essentially a way of manipulating franking credits to the shareholder's advantage?''
Yes , which is why they can get away with such a discount .
But those franking credits have the most benefit for those with very low tax rates [ hence manna from heaven for super pension phase ].
For me, they are stealing those franking credits from future dividend recipients.
cheers
For some reason the site reply button wont work, hence a new post.