Share
- Release Date: 04/09/13 18:24
- Summary: GENERAL: TWR: Return of capital - Australian Taxation Office Ruling
- Price Sensitive: No
- Download Document 2.06KB
TWR
04/09/2013 16:24
GENERAL
REL: 1624 HRS Tower Limited
GENERAL: TWR: Return of capital - Australian Taxation Office Ruling
4 September 2013
Market Information NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
AUSTRALIA
Return of capital - Australian Taxation Office Ruling
On 8 April 2013 TOWER Limited announced that it had cancelled 3 in every 13
ordinary TOWER shares registered in the name of each TOWER shareholder
pursuant to an arrangement to return capital approved by TOWER's shareholders
at its Annual Shareholders' Meeting on 21 March 2013. A class ruling from
the Australian Taxation Office regarding the tax treatment of the return of
capital for Australian resident shareholders has now been published.
In summary, for Australian resident shareholders who held TOWER shares at the
time of the return of capital, the class ruling confirms that no part of the
return of capital made to Australian shareholders is a dividend for
Australian tax purposes. A Capital Gains Tax (CGT) event occurred when the
shares under the arrangement were cancelled.
The entire amount paid on the return of capital (the Australian dollar
equivalent of NZ$1.92) will be regarded as the capital proceeds from the CGT
event. An Australian shareholder will have made a capital gain if the
capital proceeds were more than the cost base for the shares. A capital loss
will have arisen if the capital proceeds were less than the reduced cost base
of the shares.
If Australian shareholders have any queries in relation to the class ruling,
they are advised to obtain specific taxation advice on the treatment of the
capital return, taking into account their particular circumstances.
The class ruling can be viewed on the web site of the Australian Taxation
Office, www.ato.gov.au.
Ends
Bronwyn Walsh
Company Secretary & Compliance Manager
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
End CA:00240701 For:TWR Type:GENERAL Time:2013-09-04 16:24:35
