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Determine James net capital gain loss explaining each possible GST event and analysis thereof basses on australian tax law James' investment activities James holds 5
Determine James net capital gain loss explaining each possible GST event and analysis thereof basses on australian tax law
James' investment activities
James holds shares in the ASX listed company Incitec Pivot Limited IPL James had acquired the IPL shares on the th of August for A$ per share plus A$ brokerage. On November IPL announced it was undertaking a return of capital to shareholders via a prorata capital return and unfranked special dividend.
The payment date was February and is summarized as follows:
Return of capital of $ per share capital return. Special dividend unfranked of $ per share.
This did not result in a reduction of the number of shares James held.
The ATO class Ruling CR Incitec Pivot Limited reduction of share capital sets out the income tax consequences for holders of ordinary shares in IPL who received the capital return.
The dividend is assessable under s ITAA
As can be seen by the remuneration package negotiated with Stanley Pty Ltd James is interested in the cryptoeconomy. His interest extends beyond Bitcoin and has undertaken a couple of transactions in recent months. Firstly, James attended a concert in January The ticket agency had a discounted price for those willing to purchase tickets using crypto assets. Given his familiarity with the technology, James thought this was a great opportunity to save some money. To access the discounted tickets, James purchased A$ worth of Ether ETH through a centralized exchange and immediately used this to purchase the concert ticket for the same value. He saved A$
Then in February James purchased Ripple tokens XRP for A$ and incurred A$ in transaction fees. Four days later, he then exchanged the XRP for Ether ETH At that time, the market value of the ETH was A$
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