PAC 0.58% $10.36 pacific current group limited

PAC selling GQG shares - AFR Street Talk, page-13

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    In terms of US tax liability PAC will need to pay approximately $AUD57.68M based on a 28% long term capital gains tax rate - 21% federal tax and 7% Washington State Capital Gains tax is due.

    The cash to be received after tax is $AUD199.62M.

    This assumes all of the losses in note 4 of the financials can be used ($AUD46.3M).

    Calculation in AUD as follows:
    $257.3M GQG sale proceeds
    less $46.3M in tax losses
    less $5M investment amount
    $206M net proceeds after applying tax losses
    *28% in taxes (21% Federal + 7% Washington State)
    $57.68M ($206M x 28%)

    Net proceeds $257.3M - $57.68M = $199.62M

    If GQG was held by an Australian entity it could have used the long term holding 50% discount. Assuming net sale proceeds would be:
    $257.3M GQG sale proceed
    less $46.3M in tax losses
    less $5M investment amount
    Divide by 2 (50% discount)
    $103M in taxable gains
    *30% (because over $50M in revenue)
    $30.9M ($103M x 30%)

    Net proceeds $257.3M - $30.9M = $226.4M

    Happy to be corrected on above calculations if anyone has a bit more insight into US taxes.
 
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