No answer yet from Investor Relations hopefully tomorrow...

No answer yet from Investor Relations hopefully tomorrow morning....

Anyway I got to thinking about today's announcement and well Capital Gains in general.

Does everybody get that BJT made a fat wad in terms of capital gains when they sold Shinjuku? Does everybody get that this passes straight down to you as does the corresponding CGT liability? I think this has provided some natural price suppression as you inherit a CGT liability as soon as you buy BJT. Presumably this has put some investors off particularly moreso now as the amount of the cash distribution is a little up in the air.

Evidently (and I agree) a 3.3 cent cash component distribution is not necessarily enough of an enticement when you consider that this would be normal assessable income and you would pay tax on this. But what do you do wiht your CGT component if all you get is the 3.3 cents?

I still feel that investors won't get screwed over in terms of their tax bill least of all Mr Eric Lucas who probably owns a bunch of stock.

From my understanding (that was a disclaimer) this is what I understand and determine the capital gain to be per unit:

All amounts in Yen until we get to the Exchange Rate bit...

Shinjuku Office Sale Price ¥11,000,000,000
Less Shinjuku Purchase Price ¥8,260,000,000
Gain on Sale ¥2,740,000,000
50% discount ¥1,370,000,000

Assessable Gain ¥1,370,000,000

Units on Issue 508,672,564

Gain per Unit ¥2.693

Exchange Rate ($1 AUD = ¥73.83) $0.03648

Gain attributable to Unitholders 3.648 AU cents per unit

Please do correct me if I am wrong.

So, if you get a distribution of 3.3 cents for example that is ordinary taxable income. Whether or not BJT top up this amount is irrelevant if you are holding (presumably past the record date) then you have an assessable gain as above. To meet the ensuing tax bill BJT really need to be distributing aroun another 1.5 cents per unit otherwise you are out of pocket. I submit they will have this at the forefront of their minds, particularly Mr Lucas and others who own sizeable portions of stock in BJT.

(un)Fortunately for me this is of little concern as I have ample Capital Losses which which I can offset my assessable gain here. So any cash received as an allocated portion of the Capital Gain from the Shinjuku sale will be a bonus.