beppa tax implications

From page 118 of E & Y report

"For completeness, we note that if certain specific statutory provisions in Subdivision 130-C (relating to certain ‘convertible interests’) apply, any capital gain (or loss) an EPS holder makes from converting the EPS into shares in BBIL could be disregarded until the securities are subsequently sold. However, we consider that the better view is that these provisions should not apply in these circumstances. EPS holders are advised to seek their own independent advice in relation to this matter."

So it appears any one holding BEPPA bought at lows in past 11 months may be in for a huge CGT whack from the ATO.