TAH-ATTN: TAH SHAREHOLDERS, URGENT., page-6

re: TAH-ATTN: THEPOSTMAN I agrre with the point of your original post in regard to directors selling shares in this manner and perhaps a limit per month should be put on how many they can sell but your facts are some what incorrect.

Yes a bank would no doubt lend Wilson the funds required to exercise the options but he would either incur a great deal of expense servicing a loan of that size or need to pay it back which gets back to the need to sell the shares. I have now doubt some sort of financing facility would have been used.

You are incorrect on the capital gains issue it is deffinately the exercise date of the options that is used in calculating the time the shares are held not the date the options were received (Taxation Determination TD16) Therefore if an option is exercised and the shares received are sold in less than 12 months there is no 50% dicount regardless of how long the options were held for. If the options were puchased the cost of the shares would be the option cost + exercise price.

Wilson also would not pay 48.5% tax on the dividends held the shares for more than 45 days.

I am assuming it is a 32 cent dividend being paid 100% franked at 30%

Total cash received on 2,694,500 shares would be $862,240

Grossed up by the 30% imputation cr the taxable dividend would be $1,231,771

Tax at 48.5% on this is $597,409 less the imputation credits $369,591 leaves a tax payable figure of $227,878 about 26% of the actual cash amount received.

Another point is that looking at the announcements the shares were held by Security Investments P/L atf Wilson Family Trust which means the profit could be distributed to family members but more than likely a corporate entity and therefore the tax results would be different again.

I advise on the above for a living.