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Restructure of Paladin Energy Limited

Paladin Engergy Ltd shareholders will need to account for a CGT event that occurred on 1 February 2018.

Last updated 25 April 2018

Shareholders in Paladin Energy Ltd on 1 February 2018 need to account for a CGT event occurring on that date. Generally, it would be expected that taxpayers would calculate an amount of capital losses that can be offset against capital gains in the 2018 year.


Richard purchased 1,000 shares in July 2011 for $2,350 ($2.35 per share). His brokerage costs were $50, making his cost base $2,400, or $2.40 per share.

The receivers and managers of Paladin Energy Ltd transferred 98% of Richard's shares to creditors and other investors for no consideration pursuant to a court order.

Richard calculated his capital losses as follows:

Capital proceeds


Cost base (0.98 × $2,400)


Capital losses


Richard also made a capital gain of $1,000 from the sale of shares in the 2018 year. In his 2018 tax return, Richard will declare a capital loss of $1,352 ($2,352 − 1,000), which he can use to offset against any capital gains in future years.

End of example


On 18 January 2018, Black J. of the Supreme Court New South Wales granted leave to the receivers and managers of Paladin Energy Ltd to transfer 98% of the fully paid shares to creditors and other investors. Shareholders of Paladin Energy Ltd did not receive any payments when 98% of their shares were transferred.

Find out more:

  • Supreme Court of NSW – In the matter of Paladin Energy Limited (subject to Deed of Company Arrangement) [2018] NSWSC 11External Link

CGT event A1 happened on 1 February 2018 when 98% shares in Paladin from existing shareholders were transferred to creditors and other investors because there is a change in ownership that is due to some act or event or by the operation of law.

Find out more:

For more information about the 45-day holding rule, or for help applying this information to your own circumstances, phone us on 13 28 61.