No specific restrictions for TLS. But it does make lots of sense to have a distribution treated as a capital return rather than a dividend[ for the tax payer]. The tax man doesn't like it for obvious reasons. So , they restrict its use, and a company would normally run it by the ATO if they were going to do one.[ ie they get a ruling]. The ATO would be happy if the capital return was from the sale of an asset. If they perceive it was just from normal profit , they will call it an unfranked dividend .
But in saying that , over the years I have noticed a few occasions when the conditions seem to have been met , and minimal , or no cash gets spat out. Hard not to think you are spot on about the reasons. the reasons. cheers
TLS Price at posting:
$4.23 Sentiment: Hold Disclosure: Held
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