http://law.ato.gov.au/atolaw/view.htm?docid=%22CLR/CR200974/NAT/ATO/00001%22 laws out the ATO Ruling. To me it appears that you reduce cost basis of shares by 6.26 cents each and enter a an unfranked dividend of 4.92 cents per share on this year's tax return.
Everyone agree with that?
The relevant parts appear to be: 29. The Commissioner proposes to make a determination under section 45B that section 45C applies to a part of the return of capital to be received by BHL shareholders. Accordingly, a part of the return of capital (4.92 cents for each BHL share) will be taken to be an unfranked dividend pursuant to section 45C.
138. The non-assessable part of the return of capital is 6.26 cents per BHL share.
139. If the non-assessable part of the payment (6.26 cents per share) is equal to or less than the cost base of the BHL share at the Payment Date, the cost base and reduced cost base of the share will be reduced by the amount of the non-assessable part (subsection 104-135(4) of the ITAA 1997).
BTA Price at posting:
$1.20 Sentiment: LT Buy Disclosure: Held
