Ann: GENERAL: ARG: Corporatisation - Tax treatmen

• Release Date: 14/03/12 10:39
• Summary: GENERAL: ARG: Corporatisation - Tax treatment of novated interest swaps
• Price Sensitive: No
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ARG
14/03/2012 08:39
GENERAL

REL: 0839 HRS Argosy Property Limited

GENERAL: ARG: Corporatisation - Tax treatment of novated interest swaps

Argosy Property Limited ("APL") had previously received advice from its tax
advisors that Argosy Property Trust ("the Trust") may be able to claim a tax
deduction for consideration it had provided to APL for assuming the Trust's
obligations under interest rate swaps that are "out of the money".

The Inland Revenue Department has recently confirmed that the deduction is
available, although its confirmation is non-binding.

The deduction will arise in the 2012 financial year for the Trust.  The
effect of the deduction is one of timing only, as income attributable to APL
equal to the deduction arising in 2012 will be spread on a yield to maturity
basis over the remaining term of the swaps.

The amount of the deduction is approximately $35.8 million.
End CA:00220672 For:ARG    Type:GENERAL    Time:2012-03-14 08:39:03