easy money, page-14

The  ATO has given a tax ruling on any sale proceeds of SYR shares by CSE and advices from CSE  are
http://copperstrike.com.au/sites/copperstrike.com.au/files/Value of CSE's investment in SYR.pdf
and a follow up
http://copperstrike.com.au/sites/co...s/Taxation Advice Upate (CSE) - ASX FINAL.pdf
Selling  on market is straightforward however if waiting for a distribution with franking credit the following needs to be taken into consideration

1. What ratio of share sale proceeds are to be returned to CSE shareholders
2. What is the tax rate of individual CSE shareholders ,

In the figures below (E&OE)  if CSE sold SYR for $6.50 , the net return to shareholders ranges from $0.61 to $0.36 depending on 1 and 2 above.

	Column 1	Column 2
0	ASSUMPTIONS	SALE OF SYR
1	Sale Price	$6.50
2	no shares held by CSE	11,000,005
3	no shares on issue	106,844,810

	Column 1	Column 2
0	DISTRIBUTION
1	Sale proceeds	$71,500,033
2	less past losses	-$6,349,097
3	Taxable income	$65,150,936
4	Taxc at 30%	-$19,545,280.65
5	available for dist	$45,605,654.85

	Column 1	Column 2	Column 3	Column 4
0	Distribution rate	100%	90%	85%
1	Amount per share	$0.43	$0.38	$0.36
2	Plus Franking credit	$0.18	$0.16	$0.16
3	Total income	$0.61	$0.55	$0.52

	Column 1	Column 2	Column 3	Column 4
0	Tax  Rate	After tax	After tax	After tax
1	0%	$0.61	$0.55	$0.52
2	10%	$0.55	$0.49	$0.47
3	15%	$0.52	$0.47	$0.44
4	30%	$0.43	$0.38	$0.36

I will be holding to take advantage of  the franking credits , rather than sell on market.