• Coles - takeover by Wesfarmers (2007)

    Overview

    On 2 July 2007, Coles Group Limited (Coles) and Wesfarmers Limited (Wesfarmers) announced a proposal for Wesfarmers to acquire Coles that was subsequently implemented on 23 November 2007. This resulted in a CGT event for Coles shareholders. This information is to help you work out the CGT consequences for your Coles shares. You need to do this for your 2007-08 tax return.

    As a Coles shareholder you disposed of your shares to Wesfarmers for one of three consideration options:

    Option

    Consideration for each Coles share

    cash ($)

    Wesfarmers ordinary shares

    Wesfarmers partially protected shares

    Standard

    4.00

    0.14215

    0.14215

    Maximum cash

    9.6118

    nil

    0.14215

    Maximum scrip

    2.9583

    0.16854

    0.14215


    Class ruling

    We have issued a class ruling, Class Ruling CR 2007/114 Income tax: scrip for scrip: acquisition of Coles Group Limited by Wesfarmers Limited.

    Worksheets

    We have also produced two worksheets to help taxpayers who participated in the takeover prepare their income tax return and update their capital gains tax (CGT) records:

    Use the 'choosing rollover' worksheet to work out the consequences for shares you made a capital gain on and are choosing scrip for scrip rollover for (these must be post-CGT shares). Use the 'not choosing rollover' worksheet for your other shares.

    You may have to use both worksheets, for example, if you had both post-CGT Coles shares and pre-CGT Coles shares, or if you have made a capital gain on some of your shares and a capital loss on others.

    Attention

    Post-CGT shares

    Post-CGT shares are shares obtained on or after 20 September 1985. Pre-CGT shares are not eligible for scrip for scrip rollover relief.

    End of attention

    Most people can use these worksheets but there are some qualifications. See Can you use these worksheets? to check if they are suitable for you.

    • Last modified: 06 Oct 2009QC 21096