From 29 September 2005 to 25 May 2006, Toll made a takeover offer for Patrick shares.
Patrick shareholders who accepted the offer received $3 cash plus 0.4 Toll shares for each Patrick share. Where Patrick shareholders were not entitled to a whole number of Toll shares from the takeover, the number of Toll shares that they received was rounded down to the nearest whole number.
Patrick shareholders who did not accept the offer before 7.00pm (Melbourne time) on 25 May 2006 had their shares compulsorily acquired on 1 July 2006. They received the same payment for their shares as accepting shareholders.
Are there any tax consequences for me?
There are two consequences:
- The disposal of your Patrick shares is a capital gains tax (CGT) event that resulted in capital gains or capital losses for you. Therefore, you have to complete the Capital gains question on your tax return for the year of income in which the event happened. This is the 2005-06 year for accepting shareholders and 2006-07 for shareholders whose Patrick shares were compulsorily acquired.
- You must work out the cost base of your new Toll shares for CGT purposes.
Scrip for scrip roll-over
If you made capital gains on the disposal of your Patrick shares, you may choose to apply scrip for scrip roll-over to the extent that you received Toll shares in exchange for your Patrick shares. You cannot apply scrip for scrip roll-over to the extent that you exchanged your Patrick shares for cash. You do not have to choose roll-over if you do not want to.
If you choose roll-over:
- you disregard the capital gains on the disposal of your Patrick shares to the extent you received Toll shares (but not cash) for your Patrick shares
- the cost bases of your Toll shares may be lower than they would be if you do not choose roll-over
- any future capital gains - in the income year that you dispose of (or have another CGT event happen to) the Toll shares - may be higher than if you had not chosen roll-over.
Doing the calculations
The worksheet will help you to work out your capital gains or capital losses from this takeover and the cost base of your Toll shares for CGT purposes. Detailed instructions for completing the worksheet, tables of share values, and a worked example will help you work through it.