IT depends upon how the merger or takeover happened. I am not...

IT depends upon how the merger or takeover happened. I am not tax consultant but here is my opinion.

So if UUUU buys BSE on the basis that UUUU pays $xxx amount money to BSE shareholder from their pocket plus convert your shares to UUUU shares then tax treatment may work differently... if i am not wrong.

However, what is happening here is two thing. BSE paying you dividend from the money they earned (i.e. your company earned or had it in their bank) so that part of the return can either be return of capital if BSE applies for exemption to ATO but in the announcement of merger it wasn't declared by BSE so it will be treated as normal special dividend and tax treated according to rule for dividend not capital gain because BSE is paying you money.

However, the converted UUUU shares is where you look at the capital gain or loss only at a time of disposal if i am reading above document correctly.

I am not tax account so talk to your account for clear understanding for BSE because every merger and their payment treated differently based on how transaction executed.

you can also ask question about this on ATO forum !