In terms of US tax liability PAC will need to pay approximately $AUD57.68M based on a 28% long term capital gains tax rate - 21% federal tax and 7% Washington State Capital Gains tax is due.
The cash to be received after tax is $AUD199.62M.
This assumes all of the losses in note 4 of the financials can be used ($AUD46.3M).
Calculation in AUD as follows: $257.3M GQG sale proceeds less $46.3M in tax losses less $5M investment amount $206M net proceeds after applying tax losses *28% in taxes (21% Federal + 7% Washington State) $57.68M ($206M x 28%)
Net proceeds $257.3M - $57.68M = $199.62M
If GQG was held by an Australian entity it could have used the long term holding 50% discount. Assuming net sale proceeds would be: $257.3M GQG sale proceed less $46.3M in tax losses less $5M investment amount Divide by 2 (50% discount) $103M in taxable gains *30% (because over $50M in revenue) $30.9M ($103M x 30%)
Net proceeds $257.3M - $30.9M = $226.4M
Happy to be corrected on above calculations if anyone has a bit more insight into US taxes.
PAC Price at posting:
$9.65 Sentiment: Buy Disclosure: Held
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