• Merger of MyState Financial Credit Union of Tasmania Limited and Tasmanian Perpetual Trustees Limited

    Overview

    This page contains information about the tax consequences for taxpayers who transferred all their MSF member shares to MyState Limited in return for MyState shares under the MSF scheme of arrangement. This occurred at the time MyState Financial Credit Union of Tasmania Limited (MSF) merged with Tasmanian Perpetual Trustees Limited (TPX) to become wholly owned subsidiaries of MyState Limited (MyState).

    This information applies to you if all of the following apply:

    • you are an Australian resident for tax purposes
    • you are not a temporary resident
    • you participated in the MSF scheme (that is, you disposed of your MSF member shares in exchange for shares in MyState)
    • you held your MSF member shares on capital account
    • you did not acquire your MSF member shares through an employee share scheme
    Attention

    If you purchased your MSF member share for $10 on or after 20 September 1985, transferred your MSF member share for shares in MyState under the MSF merger and then sold your MyState shares under the share sale facility free from brokerage, you will make a net capital gain of $957.50. You need to return this net capital gain in your 2010 income tax return.

    This net capital gain will result regardless of whether you elected scrip for scrip rollover relief when you transfer your MSF member share for shares in MyState.

    If you have made a capital gain and held your MSF member shares for at least 12 months, you may be entitled to the capital gains tax (CGT) discount of 50%.

    If you purchased your MSF member share for $10 prior to 20 September 1985, transferred your MSF member share for shares in MyState under the MSF merger and then sold your MyState shares under the share sale facility free from brokerage, you will make a capital loss of $211.10. You can offset this against capital gains made in the same year or carry it forward to offset against future capital gains.

    End of attention

    This document provides further information and examples to explain the tax consequences.

    Attention

    People who find they have lodged their income tax returns without including the proper CGT amounts should amend their income tax returns. People who amend their income tax returns before we contact them for an audit will be entitled to a reduction in any penalties that might apply.

    End of attention
      Last modified: 30 Aug 2016QC 23485