• Frequently asked questions

    Do I have to include the capital distribution I received in the form of units in Westfield Retail Trust 1 in my 2010-11 tax return?

    You do not have to include your share of the capital distribution paid by Westfield Trust as assessable income in your tax return. It is a tax-deferred distribution.

    Legally, you are required to reduce the cost base and reduced cost base of your Westfield Trust units by the amount of this and any other tax-deferred distributions you receive.

    However, as the distribution is $0.000000043 per unit, you can choose not to reduce the cost base and reduced cost base of your Westfield Trust units.

    It is possible that you have made a capital gain if the cost base and reduced cost base of your Westfield Trust units is nil just before the capital distribution (see question and answer regarding capital gain).

    Do I have to include the dividend I received in the form of units in Westfield Retail Trust 2 in my 2010-11 tax return?

    You do not have to include your share of the dividend paid by Westfield Holdings Limited, or the franking credits allocated to the dividend, in your tax return unless your dividend is $1 or more, or increases the total dividends you receive in the 2010-11 year up to the next whole dollar.

    Note that you will need to have held around 23.3 million Westfield Holdings Limited shares for your share of the dividend to have been $1.

    How do I calculate the new cost base and reduced cost base of my Westfield Trust units just after the restructure was implemented on 20 December 2010?

    The first element of the cost base and reduced cost base of each of your Westfield Trust units, just after 20 December 2010, is 59% of the cost base and reduced cost base of each of your Westfield Trust units just before 20 December 2010.

    Attention

    This is the cost base just after the restructure. Please make sure you reduce it further by the tax-deferred component of the distribution attributable to Westfield Trust for the six months ended 31 December 2010 (the amount of this component will be provided to you by the Westfield Group in the annual tax statement after 30 June 2011) and for future periods.

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    Attention

    Note that if the cost base and reduced cost base of any of your Westfield Trust units just before 20 December 2010 is nil due to tax-deferred distributions you have previously received, their cost base and reduced cost base remains nil after 20 December 2010 (you don't need to calculate as above).

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    How do I calculate the cost base of my new Westfield Retail Trust 1 units just after 20 December 2010?

    The first element of the cost base and reduced cost base of each of your Westfield Retail Trust 1 units just after 20 December 2010 is the sum of:

    • 41% of the cost base of each of your Westfield Trust units just before 20 December 2010
    • the cost base, just before 20 December 2010, of each Westfield Retail Trust 1 unit you received*.
    Attention

    Note that if the cost base and reduced cost base of any of your Westfield Trust units just before 20 December 2010 is nil, the cost base and reduced cost base of the new Westfield Retail Trust 1 units you receive in respect of them is also nil after 20 December 2010 (you don't need to calculate as above).

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    Attention

    *As the cost base of each Westfield Retail Trust 1 unit is $0.000000043 just before 20 December 2010, you can choose to disregard this amount so that the first element of the cost base and reduced cost base of each of your new Westfield Retail Trust 1 units, just after 20 December 2010, is simply 41% of the cost base of each of your Westfield Trust units just before 20 December 2010.

    End of attention

    Do I have to include a capital gain in my tax return as a result of the tax-deferred distribution if the cost base and reduced cost base of each of my units in Westfield Trust is nil due to earlier tax-deferred distributions I have received?

    You do not have to include a capital gain as a result of the tax-deferred distribution in the calculation of the "net capital gain" included in your tax return, unless your total capital gain from receiving the tax-deferred distribution is $1 or more.

    Note that you will need to have held around 23.3 million Westfield Trust units to make a capital gain of $1.

    What is the acquisition date of the Westfield Retail Trust 1 units I received in satisfaction of my share of the capital distribution?

    For the purposes of making a discount capital gain, you are taken to have acquired these Westfield Retail Trust 1 units when you acquired your corresponding Westfield Trust units.

    For all other tax purposes, you acquired them on 20 December 2010.

    What is the cost base and reduced cost base of the Westfield Retail Trust 2 units I received in satisfaction of my share of the dividend?

    The first element of the cost base and reduced cost base of each of these Westfield Retail Trust 2 units is $0.000000043. You can choose to treat the first element of the cost base and reduced cost base as nil.

    What is the acquisition date of the Westfield Retail Trust 2 units I received in satisfaction of my share of the dividend?

    For all tax purposes, you acquired these Westfield Retail Trust 2 units on 18 December 2010.

    Do I have to include any income in my tax return as a result of not taking up some or all of my entitlements under the entitlement offer?

    No. You do not have to include any income in your tax return if you did not take up some or all of your entitlements under the entitlement offer.

    Do I have to include any income in my tax return as a result of taking up some or all my entitlements under the entitlement offer?

    No. You do not have to include any income in your tax return if you took up some or all of your entitlements under the entitlement offer.

    What is the cost base and reduced cost base of the stapled units in Westfield Retail Trust 1 and Westfield Retail Trust 2 which I acquired when I took up some or all of my entitlements under the entitlement offer?

    You acquired the new stapled securities in Westfield Retail Trust under the Entitlement Offer for $2.75 each.

    Each new stapled security comprises one unit in Westfield Retail Trust 1 and one unit in Westfield Retail Trust 2, each with a separate cost base:

    • The first element of the cost base and reduced cost base of each Westfield Retail Trust 1 unit is $2.74.
    • The first element of the cost base and reduced cost base of each Westfield Retail Trust 2 unit is $0.01.

    What is the cost base and reduced cost base of the stapled units in Westfield Retail Trust 1 and Westfield Retail Trust 2 which I purchased under the IPO?

    You acquired the new stapled securities in Westfield Retail Trust under the IPO for $2.75 each.

    Each new stapled security comprises one unit in Westfield Retail Trust 1 and one unit in Westfield Retail Trust 2, each with a separate cost base:

    • The first element of the cost base and reduced cost base of each Westfield Retail Trust 1 unit is $2.74.
    • The first element of the cost base and reduced cost base of each Westfield Retail Trust 2 unit is $0.01.

    Does the restructure impact the cost base and reduced cost base of my shares in Westfield Holdings Limited or my units in Westfield America Trust?

    No, the restructure does not impact the cost base and reduced cost base of your shares in Westfield Holdings Limited or your units in Westfield America Trust.

      Last modified: 06 Jul 2011QC 24539