ATO Class Ruling CR2024/75 | Tax Cost Base | SP1(formerly ISX) | ISXFEU

Credit to @jilldunn for this post 76898363


( I have moved the below post to a new thread to make it easier to find in the future)


My read of the ATO Class Ruling is only $0.0476 cps "cost base" of ISX shares is passed through to the "cost base" of ISXFEU where it becomes $0.476 cps due to the 10:1 share consolidation.

If I am reading correctly, this means ISX Shareholders who purchased their original shares on the ASX, deduct 0.0476 from the original purchase price to arrive a their cost base for Australian Income Tax. With many buying on market at prices ranging from say, $0.10 to $1.57, there is the potential for a (large?) paper capital loss to be trapped in unmarketable SP1 (original ISX) shares, and ISXFEU shares to have a deemed cost base for Australian Income Tax of $0.476 cents per share (which have been hypothetically valued on HC from $2 to $17). If action is not taken to "sell" SP1 during the same tax year as ISXFEU shares are sold it could mean a taxable capital gain on ISXFEU shares which is unable to be offset against the paper loss on the original ISX shares (now SP1).