The entities involved in a demerger are companies and that the transfer is pursuant to a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013; The demerger involves transfer of one or more undertakings (demerged undertaking) by the transferor company (demerged company) to the transferee company (resulting company); All the property of the demerged undertaking, immediately before the demerger, becomes the property of the resulting company by virtue of the demerger; All the liabilities of the demerged undertaking, immediately before the demerger, become the liabilities of the resulting company by virtue of the demerger; The property and the liabilities of the undertaking are transferred at values appearing in its books of account immediately before the demerger. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Woolworths shareholders will be issued Endeavour Group shares which are expected to commence trading on the ASX on Thursday 24 June. The stapled securities were sold for $1.6347 each and the sale proceeds sent to you. For my holdings of EDV and WOW, what is the cost base? If two or more organizations. 36.71.05. A regular commentator in the media, investment advisor and company director, he is also a Non-Executive Director of Tyro Payments Ltd and PEXA Group Limited. Assuming that tax demerger relief is obtained, there shouldnt be any tax implications for Australian resident shareholders from the demerger per se. Did that figure exclude Bruce Mathieson's 25% stake and all state government . The fact that there is no solution shown seems to mean that Reckon cannot handle this transaction. Availability of MAT [65] [65]credit of transferor company. If you had owned your Woolworths shares for more than 12months as at the date you sold your Woolworths shares you can reduce the remaining capital gain (if any) by the 50% CGT discount. On amalgamation, all assets and liabilities of the transferor company stand vested to the transferee company, which includes credit for prepaid taxes (advance tax and withholding taxes). 13 Set Opening balance date as 01 July 2021. You must include your dividend amount, and the franking credit attached to it, at the Dividends label in your 201213 tax return. It can be accessed here. D. Under Section 47 (vii), the provisions of Section 45 do not apply to a transfer in a demerger of a capital asset by the demerged company to a resulting company if the resulting company is an Indian company. Stacey will automatically receive any franking tax offset she is entitled to. The Act provides that deduction of one-fifth of the expenditure incurred wholly and exclusively for the purpose of demerger is allowed to an assessee (being an Indian company) in each of the five successive years, beginning from the year in which the demerger takes place [47] . (a) Demerger - meaning and conditions. // -->