Here are some of the administrative issues with the bonus share issue:
https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Bonus-shares/
I am concerned about their statement:
“Bonus shares may also be assessed as a dividend where:
- the bonus shares are being substituted for a dividend to give a tax advantage,”
It seems clear from the announcement that the decision to give bonus shares was based on tax considerations.
Who makes a decision as to how it is assessed? The company, the shareholder or the ATO?
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