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  • What are the tax consequences of my participation in the sale facility?

    The sale of your units is a capital gains tax (CGT) event that may have resulted in a capital gain (or capital loss) for you. Depending on the outcome, you may have to include some details on your 2004-05 tax return.

    If you chose to receive Westfield Group stapled securities in exchange for your units, you must also work out the cost base of each element of the stapled securities.

    What are the capital gains tax consequences for me?

    Your Westfield Trust units were consolidated as the first step of the sale. After consolidation you held 0.28 units for every pre-existing unit (rounded up to the next whole number). There are no direct tax effects from this consolidation. If you acquired your units in more than one transaction, you may need to round the consolidated units and adjust the cost bases for the parcels. A fact sheet on how to do this will be available shortly.

    A CGT event happened to your Westfield Trust units on their sale on 2 July 2004, the effective date for the sale.

    You may have made a capital gain or a capital loss on your Westfield Trust units, depending on their cost base (or reduced cost base) and the amount you received for them. The amount that you received for them depends on whether you received cash or stapled securities for your units.

    Unit holders who received cash

    Westfield Trust unit holders who participated in the sale facility and received cash received approximately $4.298 for each unit* that they disposed of.

    * The actual amount was worked out as (number of units participating x 0.28, and rounded up to the next whole number) x $15.35.

    For units that you acquired after 19 September 1985*, work out if you have made a capital gain or capital loss using the capital payment amount that you received for each unit. If you acquired all of your Westfield Trust units in one transaction, you can simply compare the total cost base with the total amount of cash that you received to work out your capital gain or loss. However, if you acquired your Westfield Trust units in more than one transaction, you must allocate the cash that you received between the different parcels of units on a pro rata basis.

    * Units acquired before 20 September 1985 are pre-CGT assets and you therefore disregard any capital gain or capital loss you make on them.

    The following table will help you to work out your capital gain or loss:

    For each Westfield Trust unit with a:

    you have made:

    equal to:

    cost base of less than the cash that you received for it

    a capital gain

    the cash that you received minus the cost base of the unit.

    reduced cost base of more than the cash that you received for it

    a capital loss

    the reduced cost base of the unit minus the cash that you received.

    * For information on how to work out the cost base and reduced cost base for units, see the Guide to capital gains tax.

    Unit holders who received stapled securities

    Westfield Trust unit holders who participated in the sale facility and received stapled securities received proceeds worth approximately $4.33 for each unit* that they disposed of.

    * The actual amount was worked out as (number of units participating x 0.28, and rounded up to the next whole number) x the value of a stapled security at the time. The stapled securities were valued at $15.48 each at the time of the sale.

    For units that you acquired after 19 September 1985*, work out if you have made a capital gain or capital loss using the capital proceeds amount of $15.48 for each stapled security you received under the sale. If you acquired all of your Westfield Trust units in one transaction, you can simply compare the total cost base with the total value of the Westfield Group stapled securities that you received to work out your capital gain or loss. However, if you acquired your Westfield Trust units in more than one transaction, you must allocate the value of the stapled securities that you received between the different parcels of units on a pro rata basis. There is a fact sheet on how to do these calculations in preparation.

    * Units acquired before 20 September 1985 are pre-CGT assets and you therefore disregard any capital gain or capital loss you make on them.

    The following table will help you to work out your capital gain or loss:

    For each Westfield Trust unit with a:

    you have made:

    equal to:

    cost base of less than of the value of the securities that you received for it

    a capital gain

    the value of the securities received for it minus the cost base of the unit

    reduced cost base of more than the value of the securities that you received for it

    a capital loss

    the reduced cost base of the unit minus the value of the securities received for it

    * For information on how to work out the cost base and reduced cost base for units, see the Guide to capital gains tax.

      Last modified: 06 Oct 2009QC 18185