1. 1. Standard Investments Limited share repurchase - simultaneous and staggered.

   Standard Investments Limited has 42,000 ordinary shares which are held by the following shareholders:

   Roger Hampton                                     6,750

   John Bland                                             4,750

   Susan Capone                                        1,250

   Chris Hammersmith                              4,250

   Hamish Murphy                                     6,750

   Simon Templar                                      5,500

   John Arnold                                           4,500

   Mike Miller                                            8,250

                                                                                                   42,000

    

   The shareholders are not associated persons in any manner. 

    

   Required:

    

   Assuming that the Commissioner will be satisfied that the following repurchases are not made in lieu of a dividend, are the bright line tests (thresholds) met in the following circumstances? In the course of your answer include an explanation of what the relevant bright line test is and comment on the tax implications of your calculations (work to 2 decimal places.)

    

   1. Standard Investments Limited offers to repurchase 2,000 shares each from Hamish Murphy, Simon Templar and Mike Miller on 1 June 2021. The offers are accepted.
   2. Standard Investments Limited then offers to repurchase 1,250 shares from Roger Hampton on 1 August 2021 and 1,500 shares from John Bland on 1 October 2021. Both offers are accepted.