ANZR Entitlement Offer - how to show in Sharesight

Discussions & news
1

Hi guys, any suggestions on how to correctly enter the ANZR entitlement offer details in Sharesight? I sold my 15:1 entitlements on market, so wondering how to represent the getting of the entitlement (eg. buy, opening balance etc?) and the sale of them so they are correctly represented in my 22/23 tax reports.

1 Like
2

Hi frankvo123,

Please refer to ATO 2017/004.

Taxing retail premiums | Australian Taxation Office

Australian resident shareholders
A shareholder will make a capital gain if the retail premium amount exceeds the cost base of the entitlement, generally incidental costs.

A shareholder is taken to have acquired the rights when it acquired the original shares. Therefore, any capital gain may represent a discount capital gain if the eligible shareholder’s original shares have been held for 12 months or more.

Retail premiums paid to shareholders are not dividends.

Here’s the link to download the document.
Taxation Ruling TR 2017/4

Kind Regards

3

Thanks very much for your reply Roshan,
I’m aware of what the true capital gain “should” be in this scenario - in my case a 50% cap gain discount as I held the original ANZ shares for >12mnths. What I was looking for guidance on is how to input this in Sharesight so the cap gain for sale of these entitlements is correctly shown in the FY22/23 cap gain reports (with the 50% discount applied). As it stands if I enter the buy date as the date the entitlements became allocated to me (ie. this fin year), with me selling the entitlements a few weeks later, the Sharesight capital gain report reads this as a short term gain (therefore not showing the 50% discount).

At this point I’m considering just putting in an artificial buy date >12mnths ago (with some comments in the buy transaction, so the Sharesight cap gains report correctly shows the cap gain with the 50% discount applied - unless someone can tell me a better way to get to the same end result?

4

Buy date:
“Accordingly, an Eligible shareholder is taken to have acquired the rights when it acquired the original shares.”

Please refer to ATO TR2017/4 page 3 of 10.

  1. An Eligible shareholder’s Entitlements are ‘rights’ acquired from the Company for the purposes of section 130-45 of the ITAA 1997. Accordingly, an Eligible shareholder is taken to have acquired the rights when it acquired the original shares. Therefore, any capital gain may represent a discount capital gain so far as the Eligible shareholder’s original shares have been held for 12 months or more.