PTFE
An elegant thought but (at best) it would reduce the CGT payable on any cash component of the offer rather than roll it over to a future date.
I've been in HDR since around 2000 so this is a particularly sensitive issue for me. I also haven't been involved in a takeover like this before so I'm a bit inexperienced. I do believe however that in NSW if property is compulsorily acquired and if the capital generated is invested in a similar class of asset within a certain period (I think 18 months) then the CGT liability is not triggered and can be rolled into the new asset.
I see our position with the cash component of the TLW offer to be in a parallel position. As shareholders we did not seek the takeover, and indeed as individuals we may vote against it, however circumstances outside our control may trigger a CGT liability that would not otherwise have existed. It seems only reasonable then that some CGT rollover relief should be available.
I intend to call the ATO for an opinion and will share any info here. I don't have high hopes though as I haven't been able to get authoratitive and clear advice from them by 'phone in the past.
I have also put the issue to my accountant but he referred me to the explanatory document stating that circumstances vary between takeovers and the documentation should address the issue......(yawn)
I expect that a number of posters may be facing this issue - whether they currently realise it or not. So maybe relevant wisdom exists out there somewhere or maybe if people in similar circumstances unite there could be a beneficial strength.
Solly
HDR
hardman resources limited
