I can see what they are trying to do here, but my concern is that previous announcements by management have not been truthful IMO. And I'm not sure why that would be the case and why they haven't been upfront from the start.
For example, take this part of the announcement here:
"Firefinch was advised in January 2025 that the ATO would not be in a position to provide a determination prior to LLL issuing the Tranche 1 payment. "
Considering that we were told that the initial request was for a class ruling on the distribution of LLL shares prior to the issuing of the Trance 1 payment, I'm not sure why the ATO would be waiting on the tranche 1 payment. The ruling should have been provided based on the distribution of LLL shares.
We also knew, as far back as December, that the special dividend component was to be treated as "conduit foreign income".
Why did they wait until May 2025 to submit a "second ruling request" when we knew in December 2024 how the special divvy was going to be applied and then being confirmed by the ATO on 19th Feb.
It took 3 months to then submit the second ruling request...???? What else do they have on their plate that they need to be waiting 3 months??? It didn't have to do with the LLL AGM by any chance did it?
They claim this delay was because the "intial request" was fundamentally changed when the ATO released their class ruling on LLL special divvy. We knew exactly what the ATO tax treatment was going to be in December 2024 but these Mensa members seem to think there was a ground shattering revelation on the 19th of Feb and it was so ground shattering that it then took 3 more months to come to terms with it and submit a second request...
This is how we are being treated:
"Based on professional advice the Board has determined that the most effective way to deliver the most value to shareholders at this time is to retain the LLL shares and pay shareholders dividends from the LLL distributions. If LLL achieves its aim of recommencing trading on the ASX, the Firefinch Board
will determine the best way to return the value of those LLL shares to Firefinch shareholders."
They would have known in December 2024 that the application of conduit foreign income would apply to FFX's receipt of the LLL special divvy. Why didn't they say they plan on receiving all the LLL funds into FFX before distributing them to FFX shareholders as that appears to be the best tax outcome for shareholders back in Jan or even Feb?
They keep banging on about returning LLL shares back to shareholders as soon as possible but this is clearly not true, as per statement above. Why are they being dishonest?
"Extremely complex". Give me a spell. It doesn't take 6 months to realise that the tax treatment of the LLL funds might be better to be received via CFI to FFX and have a better tax application when distributing those funds to FFX holders due to how big a loss FFX has on the books.
