Capital Gains Tax
As a Securityholder in Infigen Energy (ASX: IFN), you own shares in an Australian company, Infigen Energy Limited (IEL), shares in a Bermuda company, which is registered in Australia as a foreign company, Infigen Energy (Bermuda) Limited (IEBL), and units in a trust which is an Australian registered scheme, Infigen Energy Trust (IET).
Each share in IEL, each share in IEBL and each unit in IET remain separate assets for Australian capital gains tax purposes.
To calculate your cost base for each separate capital gains tax asset, you will need to split the acquisition cost of each stapled security between the three assets. This split needs to be done on a reasonable basis. While it is for you to decide how to split the acquisition cost of your stapled securities you might decide to use the relative proportion of net assets of IEL, IEBL and IET.
Click herefor information about calculating your cost base for Australian capital gains tax purposes.
The Taxation Statement Guides include general information concerning the capital gains tax implications of receiving tax deferred distributions from IET and of disposing Infigen stapled securities.
Non-residents
Non-Tax Residents are exempt for Australian tax on any capital gains from CGT events in respect of CGT assets unless, broadly, the relevant CGT asset is taxable Australian real property, an ‘indirect Australian real property interest’ or a business asset of an Australian permanent establishment.
An indirect Australian real property interest arises where a Non-Tax Resident, together with its associates, holds 10% or more of the membership interests in an entity (e.g. shares in a company or units in a trust) and 50% or more of the underlying market value of the entity is attributable to taxable Australian real property.
The relevant membership interests held by Non-Tax Residents are the shares in IEL, the shares in IEBL and the units in IET. The membership interests themselves are not taxable Australian real property. Furthermore, holding shares in IEL, shares in IEBL and units in IET should not of itself constitute carrying on business in Australia through a permanent establishment. On this basis, Non-Tax Resident security holders who, together with their associates, do not hold (and have not held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET should generally not be subject to Australian CGT upon disposal of shares in IEL, shares in IEBL and units in IET.
While it is clear that the shares in IEBL and the units in IET should not constitute indirect Australian real property interests, Infigen has not determined whether the shares in IEL constitute indirect Australian real property interests. Accordingly, Infigen is not in a position to indicate whether Non-Tax Resident Securityholders who, together with their associates, hold (or have held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET may be subject to Australian CGT upon the disposal of shares in IEL. If you are a Non-Tax Resident and you, together with your associates, hold (or have held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET, you should consult your tax adviser in relation to this matter.
Key Technical Tax Terms
The above information for non-residents uses technical tax terms. A brief explanation of their meaning is set out in Appendix 1 of the Taxation Statement Guides.
Click herefor the 2011 Taxation Statement Guide.
Further Queries
Should you have any queries relating to your specific Securityholding or Distribution Statement you can contact Link Market Services on:
Link Market Services:
Telephone: 1300 554 474 (within Australia) / +61 2 8280 7111
Email: infigen@linkmarketservices.com.au
Website: Link Market Services
You should not rely on this information as taxation or financial advice as it may not be applicable to your specific circumstances. Advice relating to your particular tax issues should be obtained from your accountant or other professional adviser.