One of my investments is in a company called Copper Strike (CSE) and its assets in shares in Syrah Resources (SYR) .
Have held these shares since company was formed in 2007.
Directors have indicated when full value of SYR is obtained shares will be sold and proceeds returned to shareholders less Capital Gains Tax.
ATO has advised as follows
"For the Company to generate sufficient franking credits in order to pay a fully franked
dividend the Company must
:i)dispose of the Syrah shares in the income tax year prior to the income tax year that it franks a dividend
And
ii)return the proceeds as cash and not as an in-specie distribution."
I do not have the ATO ruling on this case and am relying on advice from SYR which appears below
30/102014 Advice re Taxation implications
http://copperstrike.com.au/sites/copperstrike.com.au/files/Value of CSE's investment in SYR.pdf
Follow up Taxation advice of 15/3/2015
http://copperstrike.com.au/sites/co...s/Taxation Advice Upate (CSE) - ASX FINAL.pdf
