Yep.
A holder of Vicinity owns a stapled security comprising one unit of Vicinity Limited and one unit of Vicinity Centres Trust.
The company manages the trust.
That's the complication of tax affairs that was mentioned.
They didn't pay a dividend but as a holder I will be paying tax on my distribution as it will be added to my other income.
Also holding such stapled securities complicates the record keeping of the security holder.
Due to losses incurred for both accounting and tax purposes, Vicinity Limited and Vicinity Holdings Limited did not pay income tax for the 2015 financial year. However, the taxable incomes from the property investments in their stapled trusts were taxed on a flow through basis in the hands of their investors.
In addition to the income tax paid by investors, Vicinity pays many other taxes relating to its property activities, including land taxes, stamp duties, council rates and fire levies, payroll taxes and fringe benefits taxes. Moreover, Vicinity assists with maintaining efficiency in the Australian tax system by collecting and remitting GST and withholding taxes to the ATO.
