13 May 099 Review of the Taxation Treatment of Off-Market Share BuybacksIn a media release issued on 12 May 2009, the Chairman of the Board of Taxation, Richard Warburton, the Assistant Treasurer's announcement in the 2009-10 Budget that the Government will implement the Board of Taxation's recommendations to improve the taxation treatment of off-market share buybacks.
In reviewing the taxation treatment of off-market share buybacks the Board considered the benefits that off-market buybacks can bring to companies and the operation of the capital markets, as well as the equity concerns that have been raised about some shareholders benefiting at the expense of others. The six recommendations set out in the Board's Report are designed to considerably reduce the heavy compliance and administrative costs that the current taxation treatment imposes on taxpayers and the Australian Taxation Office while maintaining the efficiency benefits of off-market share buybacks and addressing the equity concerns.
For a copy of the Board's media release, No 23, 12 May 2009, go here.
For a copy of the Board's report, go here.