Ann: Biota to return $20 million to shareholders , page-25

re: Ann: Biota to return $20 million to share... BrentStory

If the payment is ruled a dividend by the ATO, you will have to pay tax on the full amount of the dividend. Forget about the reduction of 30% as it is totally irrelevant since there is NO franking of the dividend. (The BTA press release on 13 Aug 2009 specifically referred to the proposed payment as "Unfranked Dividend").

Treat that amount you will receive in early Dec (assuming shareholders approve the motion) as you would do interest on your bank deposit or savings account deposit = 100% taxable.

If it is ruled a return of capital, the payment you receive will reduce your cost base for your shares and will only come into play when you SELL your shares. If you hang onto your shares, then nothing happens until you sell them and at that time your capital gains or losses will be calculated.

Since BTA is obtaining an ATO class ruling the treatment of the payment will be clearly spelt out and you will also have the opportunity to view the ruling when BTA makes that available or you might even be able to view it at the ATO website.

Please do your own research and seek financial and tax advice before dealing in the shares.