• Toll's takeover of Patrick - CGT worksheets

    Step 1

    Complete worksheet A.

    Worksheet A - work out your capital proceeds

    Date of event - either the date from 29/9/05 to 25/5/06 when you accepted the offer;
    or 1/7/06 if you did not accept the offer

    A1

     

    Number of Patrick shares exchanged in the takeover

    A2

     

    Value of each Patrick share on date of acceptance - value from table 1 for date A1

    A3

     

    Number of Toll shares received

    A4

     

    Value of each Toll share on date of acceptance - value from table 2 for date A1

    A5

     

    Value of Toll shares received - (A4)   (A5)

    A6

     

    Cash received

    A7

     

    Total capital proceeds - (A6) + (A7)

    A8

     

    Step 2

    Complete worksheet B. See page 5 of the PDF version for a blank copy of worksheet B.

    Note 1 Choosing whether to apply scrip for scrip roll-over

    Some of the factors you may want to consider before making your choice include:

    • Once you have lodged your tax return you cannot change your choice.
    • If you don't choose roll-over, you may still pay little or no tax on the capital gain:
      • your taxable income, with the capital gain included, may attract little or no tax
      • if you have sufficient capital losses, the capital gain could be reduced to nil so that no tax is payable.
    • Projections of your tax payable on the capital gain in the current year and a later year when you may dispose of the new shares may produce a lower tax if you do not choose roll-over. However you will need to consider the following:
      • tax rates may change
      • your level of income may increase or decrease in future years
      • share values may change
      • the formulas for calculating the new cost base may provide a tax advantage or disincentive.

    Note 2 Indexation method

    For Patrick shares that you acquired before 11.45am 21 September 1999, you may choose between an indexed gain and an unindexed gain for this takeover, but the cost base of your new Toll shares will be worked out using an unindexed cost base. There is no one factor to use to work out whether to choose an indexed gain as it depends on the type of asset you own, how long you have owned it, the dates you owned it and past rates of inflation. Because capital losses must be offset against capital gains before the discount is applied, your choice may also depend on the amount of capital losses that you have available.

    This worksheet does not cater for the separate calculation of an indexed capital gain. Therefore, if you choose to use an indexed capital gain, in working out B6 (and B10), you must index the cost base (B4) up to September 1999. If you do this and you choose roll-over, you must then recalculate B4 and B9 to exclude indexation from your calculation of the cost base of your new Toll shares (C3).

    Note 3 Discount method

    For parcels where you use the discount method, show the amounts at steps 2 and 3 before you apply the 50% discount.

    Step 3

    Summarise the amounts from this takeover that you need for your capital gains and losses calculation on your tax return.

    Amounts you need to take into account when completing the Capital gains question on your tax return

    Income year *

     

    Indexed capital gains from this takeover

     

    Discount capital gains from this takeover

     

    Other capital gains from this takeover

     

    Total capital gains from this takeover

     

    Capital losses from this takeover

     

    *  2005-06 if you accepted the takeover offer or
       2006-07 if your shares were compulsorily acquired

      Last modified: 06 Oct 2009QC 19172