1 In October 2014, following the second half 2014 distribution, ATLIX received a Class Ruling (Class Ruling CR 2014/85) from the Australian Taxation Office (ATO) regarding the 6.4 cent per security capital return. The Class Ruling confirmed that no part of the capital return component of the distribution was to be characterised as a dividend for Australian taxation purposes.
2 In April 2015, ATLIX received a Private Binding Ruling (Ruling) from the ATO to confirm certain taxation implications arising for ATLIX in relation to the first half 2015 distribution and subsequent distributions through to 30 June 2019. In the Ruling the ATO has confirmed that, in the absence of a material change in the circumstances disclosed in the Ruling, it will not seek to apply either section 45B or 45C to the capital component of these distributions. Section 45B is an integrity measure which, if it applies, allows the ATO to deem some or all of a capital distribution to be a dividend for Australian income tax purposes.
Accordingly, ATLIX believes that Australian taxpayers should treat this component as a capital return, as advised in the distribution statements sent to investors. Australian taxpayers should monitor their cost base in ATLIX, as capital gains may need to be recorded once an investor's capital base has been fully returned. To assist with this assessment, cost base calculators are available on this website in Investor Resources.
Details of distributions paid by MIG from the date of listing to the date of restructure into Intoll and ALX are set out below: