reserves, page-17

bit of an ambiguous qu daniel - depends what you are referring to and your circumstances:

1) sale of EFS by TXN. Section 1031 of the Internal Revenue Code allows for the redeployment of capital from the completion of an asset sale of one project into another project within 180 days without the realised gain being recognised at the time of the exchange.

I've heard rumors that IF a sale of the EFS takes place the company would like to issue a return of capital for some of that though. Not sure how the US/Aussie taxation treaty works - my assumption is that TXN would pay about 30% on either capital gains or trading profits.

So if 50% is rolled over and 30% tax on the remaining 50% = effective tax of 15%.

2) if the company is sold via a takeover - the tax applicable to the share holders will either be a trading gain or a capital gain - depending on your personal circumstances (eg how long you've held them and how you trade) and the rate will depend on what structure you hold them in (ie personal = stepped rate from 0% to 48.5% vs company = 30%) as well as the size of the gain.