Capital management

Published on 01 Jun 14 by "THE TAX SPECIALIST" JOURNAL ARTICLE

Capital management, including raising and returning capital, carries with it a range of taxation implications, some of which exhibit a degree of uncertainty. Much of that uncertainty arises from the practice of the ATO and the discretions afforded the Commissioner of Taxation under a number of specific integrity measures. This article is intended to provide an update on the key Australian income tax issues, ATO administrative practice, and current tax reviews for corporates and their shareholders, in relation to undertaking capital management initiatives.

The article is, broadly, in two parts. The first part considers capital raisings by non-financial corporates through the use of hybrid securities and rights issues that use so-called retail premiums. The second part deals with returning capital to shareholders, including share buy-backs, returns of capital, and tainting of the share capital account.

Author profiles

Cameron Blackwood ATI

Cameron Blackwood, ATI, is the Head of Tax at Corrs and is a leading transactional tax expert, specialising in mergers, acquisitions, and restructures. Having advised several of Australia’s largest taxpayers, Cameron’s expertise includes cross-border issues and all aspects of employee share schemes. He has significant experience acting for public and private companies on capital management, including capital raising, return of capital, special dividends and buy-backs and debt raisings. He regularly presents at The Tax Institute and the Corporate Tax Association on M&A, management incentive plans and international tax issues and demergers. Cameron has been recognised as a leading lawyer by legal directories and publications including Chambers, The Legal 500 Asia Pacific and Best Lawyers for Tax in Australia. - Current at 30 May 2024

More by Cameron BLACKWOOD

• Retaining and rewarding employees post pandemic paper - 18-October-2021
• Demerger relief rules: What constitutes a “restructuring”? - 01-October-2020
• Current issues in M&A demergers paper - 22-August-2019
• Taxing private trusts – A moving target - 01-February-2019
• The expanding offshore client - 01-September-2017
• The expanding offshore client – How Australian tax rules are taken with you and how to manage them paper - 25-May-2017
• New employee share scheme rules: SME startups paper - 02-June-2016
• Capital management paper - 22-May-2014
• Workshop one - Outbound investment paper - 27-October-2011
• An update on reform of the outbound investment rules - 01-April-2011
• An update on reform of the outbound investment rules paper - 02-March-2011
• Reform of the anti-tax deferral rules: An update - 01-August-2010
• Tax Case: No room at the inn - 01-February-2005

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Richard Hendriks CTA

Richard Hendriks, Richard is Head of Mergers and Acquisitions (M&A) at Greenwoods & Herbert Smith Freehills. He has broad experience in corporate tax matters, with a particular focus on listed-company M&A transactions, including demergers. A Director since 1998, he specialises in M&A and demergers, capital management and corporate restructures, including equity and debt raisings. Richard has in-depth knowledge of tax consolidation, executive share and option plans, and international tax matters. After eight years with several international professional services firms in Australia and the UK, he joined Greenwoods in 1993. - Current at 12 February 2019

More by Richard HENDRIKS

• Current issues in M&A demergers paper - 22-August-2019
• Current issues in M&A/demergers paper - 23-May-2019
• An update on the consolidation regime paper - 19-May-2011
• Merger & acquisitions transactions paper - 14-October-2010
• M&A and consolidation: New restructure rules paper - 01-May-2009
• Corporate acquisitions and demergers paper - 02-November-2007
• Partnerships and trusts - 03-February-2003

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