Sorry but i believe you are incorrect. Say your average buy price is 12.5 c. Then if they pay 12.6 c as a capital return you pay tax on 0.1 c profit - ie bugger all. This is best case scenario - 100% capital return for most people as most will not make a huge capital gain that gets taxed. If for example it’s a 10c unfranked dividend and a 2.6 c capital return people pay their marginal tax rate ( for me 45% ) on a 10c profit - ie 4.5 c tax. They are then left with a large capital loss. Keeping the same average buy price of 12.5 c per share then you are left with a capital loss of 9.9c per share which can be used to offset capital gains from other investments. However if you don’t have capital gains to offset you are left with a large capital loss that you can defer to other years but in the meantime, in this example I have paid a massive amount of tax and am left with a large capital loss that I can hopefully use in later years. No thanks ! Hence I sold at 11.5 c. Of course the situation is very different if you have made large capital gains elsewhere to offset or you are buying this in super account and pay bugger all tax ( 0% or 15% in accumulation phase ). Everyone needs to make their own assessment of their personal tax implications.
They do not know what portion they will pay as a capital return and as an unfranked dividend. That’s why they are waiting on a private tax ruling that they say will take 60-90 days. To find out what portion they can pay as a capital return and as a dividend. It’s not necessarily up to them.
GLTAHs
CE1 Price at posting:
12.5¢ Sentiment: Sell Disclosure: Not Held
(20min delay)