Pasminco Shareholders

The Deed Administrators previously received a tax ruling from the Australian Taxation Office advising that despite the Deed Administrators making a declaration deeming Pasminco shares worthless, a Capital Gains Tax event has not occurred under current legislation. This meant that to date, Pasminco shareholders have been unable to claim a tax loss on their shares.

Recently, however, the Australian Taxation Office issued an Interpretative Decision (ATOID 2003/1024) and a Taxation Determination (TD 2004/13) that may possibly allow Pasminco shareholders to claim a tax loss on their shares.

A copy of ATOID 2003/1024 and TD 2004/13 are available at:

http://law.ato.gov.au/atolaw/search.htm

To access the Interpretative Decision, place a tick in the box marked `ATO Interpretative Decision` and type `2003/1024` in the box located next to the search button.

Further information on TD 2004/13 can be found utilising the following link.

http://www.ato.gov.au/individuals/content.asp?doc=/content/45789.htm

Further, in the 2004 Federal Budget, it was proposed that any insolvency practitioner (for example an administrator) will be able to declare shares in a company worthless thus enabling shareholders to crystallise a loss on their shares. The enabling legislation in this regard requires Royal Assent.

Note: Shareholders must seek their own taxation advice in relation to the application of ATOID 2003/1024 and TD 2004/13 to their individual circumstances. The Deed Administrators, (or any member or employee of Ferrier Hodgson), are not in any way providing tax advice in respect of this matter.

 


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Pasminco Limited (Subject to Deed of Company Agreement) - ("Pasminco") has taken all reasonable care in preparing and publishing the information contained on this web site. The information is not a substitute for detailed investigation or analysis on any particular issue. You may download information on this web site for your personal use or to inform others about Pasminco. You may not reproduce or modify it without our express permission. Pasminco and the Deed Administrators will not be responsible for any loss or damage arising from the use of the information.

 

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