I have been surprised to see no comment on this topic !!!Does...

I have been surprised to see no comment on this topic !!!

Does anyone have any idea why the ATO have ruled the capital return be treated as 7.9cent unfranked dividend.
I have received correspondence from UOS asking me to join their action against the ATO in this matter.

I am unlikely to do so as I have concerns that the interests of the majority owners may not align with those of minority shareholders.

My theory on the basis of the ruling is that the ATO are likely to be unhappy that the majority owners of the business have reinvested through the DRP all dividends and paid no tax.
With the return of capital the owners will effectively receive their dividends without paying any tax. As minority owners we are required to pay income on the dividend that we reinvest.
To my mind this ruling is prejudicial to the interests of minority shareholders.

Whilst the move by the ATO to force UOS to deduct dividend withholding tax for non residents will not impact shareholders directly it may have an impact on how the pot of gold is distributed in the future!
I am sure that the owners may be looking at more radical restructuring and possibly even buyout minority shareholders
And goodbye ATO !!!
Anyone have any information or thought?

I have a large position and have always reinvested by divid ends in the DRP ...