2019 Caltex (CTX) Share Buy-Back

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Note

BGL does not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.

Overview


 

Details Amount per share
Dividend Component $21.42
Capital Component $2.01
Excess of the Tax Value over the Buy-back Price. $3.59
Sale Consideration $5.60

(capital component + excess of the Tax Value over the buy-back price)

Buy Back Price $23.43

For more detail refer to the ATO class ruling  

Instructions


The following components will need to be calculated for the fund's holding of CTX shares:

  • Capital proceeds received (Sale Consideration)
  • Excess of the Tax Value over the buy-back price
  • Dividend
  • Capital component of sale consideration

After this, a journal will need to be posted to process the share buy-back

Example


A fund with 1,000 CTX shares participated in the buy-back

The components of the transaction are calculated as:

  • Capital Proceeds: $5.60 x 1,000 = $5,600 
  • $3.59 x 1,000 = $3,590
  • Dividend: $21.42 x 1,000 = $21,420
  • Bank receipt of buyback price: $23.43 x 1,000 = $23,430

The following journal will need to be posted in Simple Fund 360:

Account Name Account Code Units Debit Credit
CTX Securities 77600/CTX.AX 1,000   $5,600
Investment Expense 37500/CTX.AX N/A $3,590  
Dividends Received 23900/CTX.AX N/A   $21,420
Bank 60400/Bank N/A $23,430  

 

Investment Expense

This Investment Expense account had the Tax Label set to Not Applicable - Permanent Difference. See Non-deductible tax expense for more details on changing this.

If you wish to create a new account to record this permanent difference, please refer to Add an Account

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