mr sells some of his interest, page-32

Jeeez, I can't believe some of the posts regarding the MR selling some of his shares. Some have even intimated that he is selling because PRR is going down the gurgler.

Everybody has tax liabilities and we are not to know what position MR is in. It's his personal business. So let’s look at some reasons.

I use an accountant to do my tax as I prefer to leave it to experts with my portfolio. Now, as I understand it, there are 2 ways to address profit/loss on shares.
In my case, I do not declare a paper loss/profit on my shares that I hold each year. I only pay capital gains when I sell. As each year passes, my capital gains liability is reduced, by 50% in the first year and then, I believe, 50% of the 50% for the following. This way, I only pay minimal capital gains when I sell. I do not pay tax on the "paper loss/profit" each year.

I am also led to believe that there is an alternative, and that is to declare a paper loss/profit for each year on your portfolio. However, I am led to believe that if you do this, when you eventually sell, you have to pay full capital gains on those shares you sell, regardless of when they were actually acquired. This is the same as when you buy a yacht in the Whitsundays and hire it out. You can claim depreciation on the yacht each year, reducing your tax liability. However, come time to sell, if your $300k yacht has been depreciated to $70k over 5 years, then you pay full capital gains on $230k.

Now, MR, in his ASX release states that he is selling shares because he needs to address "including future expected personal tax obligations". Now it is possible that MR has been doing the second alternative and is at the point that any raise in SP will cause a tax liability. Maybe, just maybe, MR is expecting the SP to rise in the not to distance future, and is now covering that expectation.

Who knows? But to say MR is selling for dubious reasons, without knowing his full tax liabilities, is unprofessional, and attacking someone for this reason without knowing the full facts smacks of underlying motives.

Just because of Mr's position within the company, we do not have the right to accuse him of "selling PRR out" without understanding his own personal tax position. How many other people have had to sell their shares to meet Xmas spending, or trading profit/loss situations?

I am going with the second alternative, and believe MR is positioning himself for a future rise in the SP, and covering his position.