Tax Information
As a Securityholder in Infigen Energy (ASX: IFN), you own shares in an Australian company, Infigen Energy Limited (IEL), shares in a Bermuda company which is registered in Australia as a foreign company, Infigen Energy (Bermuda) Limited (IEBL), and units in a trust which is an Australian registered scheme, Infigen Energy Trust (IET). The share in IEL, the share in IEBL and the unit in IET form a "stapled security" the components of which cannot be separately dealt with or traded.
Distributions
Infigen Securityholders receive a Distribution Statement each time Infigen pays a distribution. In addition, Infigen provides all Securityholders with a Taxation Statement Guide once a year. The purpose of the Guide is to provide you, as a Securityholder in Infigen, with general information regarding the tax implications arising from the receipt of the relevant year's distributions from Infigen.
Disitribution Reinvestment Plan (DRP) - tax implications
Past and Future Years
2009 Information
The 2009 interim and final distributions paid by IET represent 'tax deferred' amounts. As such, for the majority of Securityholders, the information on your 2009 interim and final distribution statements should not be disclosed on your 2009 income tax return. The information on your 2009 interim and final distribution statements will be relevant if and when you dispose of any of your securities in Infigen.
The Taxation Statement Guides are intended to assist Securityholders in meeting their Australian tax compliance obligations. Securityholders are not entitled to rely on information contained in the Guides in relation to managing their specific tax affairs and should obtain their own tax advice in relation to the taxation implications associated with their investment in Infigen.
The 2009 Taxation Statement Guide will include general information concerning the tax implications of receiving the 2009 interim and financial distributions from IET. This Guide will be mailed to securityholders with their distribution statements on or around 17 September 2009.
Click here for the 2009 Taxation Statement Guide.
Past Years
2008 Information
The 2008 interim and final distributions paid by IET (formerly BBWPT) represent 'tax deferred' amounts. As such, for the majority of Securityholders, the information on your 2008 interim and final distribution statements should not be disclosed on your 2008 income tax return. The information on your 2008 interim and final distribution statements will be relevant if and when you dispose of any of your securities in Infigen.
The Taxation Statement Guides are intended to assist Securityholders in meeting their Australian tax compliance obligations. Securityholders are not entitled to rely on information contained in the Guides in relation to managing their specific tax affairs and should obtain their own tax advice in relation to the taxation implications associated with their investment in Infigen.
The 2008 Taxation Statement Guide includes general information concerning the tax implications of receiving the 2008 interim and final distributions from IET (formerly BBWPT).
Click here for the 2008 Taxation Statement Guide
2007 Information
The 2007 interim and final distributions paid by IET (previously BBWPT) represent 'tax deferred' amounts. As such, for the majority of Securityholders, the information on your 2007 interim and final distribution statements should not be disclosed on your 2007 income tax return. The information on your 2007 interim and final distribution statements will be relevant if and when you dispose of any of your securities in Infigen.
The 2007 Taxation Statement Guide includes general information concerning the tax implications of receiving the 2007 interim and final distributions from IET.
Click here for the 2007 Taxation Statement Guide
2006 Information
The 2006 interim and final distributions paid by IET represent 'tax deferred' amounts. As such, for the majority of Securityholders, the information on your 2006 interim and final distribution statements should not be disclosed on your 2006 income tax return. The information on your 2006 interim and final distribution statements will be relevant if and when you dispose of any of your securities in Infigen.
The 2006 Taxation Statement Guide includes general information concerning the tax implications of receiving the 2006 interim and final distributions from IET.
Click here for the 2006 Taxation Statement Guide
Capital Gains Tax
Each share in IEL, each share in IEBL and each unit in IET remain separate assets for Australian capital gains tax purposes.
To calculate your cost base for each separate capital gains tax asset, you will need to split the acquisition cost of each stapled security between the three assets. This split needs to be done on a reasonable basis. While it is for you to decide how to split the acquisition cost of your stapled securities you might decide to use the net assets of the respective shares and units.
Click here for information about calculating your cost base for Australian capital gains tax purposes
The Taxation Statement Guides include general information concerning the capital gains tax implications of receiving tax deferred distributions from IET and of disposing Infigen stapled securities.
Non-Residents
Non-Tax Residents are exempt for Australian tax on any capital gains from CGT events in respect of CGT assets unless, broadly, the relevant CGT asset is taxable Australian real property, an ‘indirect Australian real property interest’ or a business asset of an Australian permanent establishment.
An indirect Australian real property interest arises where a Non-Tax Resident, together with its associates, holds 10% or more of the membership interests in an entity (e.g. shares in a company or units in a trust) and 50% or more of the underlying market value of the entity is attributable to taxable Australian real property.
The relevant membership interests held by Non-Tax Residents are the shares in IEL, the shares in IEBL and the units in IET. The membership interests themselves are not taxable Australian real property. Furthermore, holding shares in IEL, shares in IEBL and units in IET should not of itself constitute carrying on business in Australia through a permanent establishment. On this basis, Non-Tax Resident security holders who, together with their associates, do not hold (and have not held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET should generally not be subject to Australian CGT upon disposal of shares in IEL, shares in IEBL and units in IET.
While it is clear that the shares in IEBL should not constitute indirect Australian real property interests, Infigen has not determined whether the shares in IEL and the units in IET constitute indirect Australian real property interests. Accordingly, Infigen is not in a position to indicate whether Non-Tax Resident Securityholders who, together with their associates, hold (or have held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET may be subject to Australian CGT upon the disposal of shares in IEL and units in IET. If you are a Non-Tax Resident and you, together with your associates, hold (or have held) 10% or more of the shares in IEL, the shares in IEBL and the units in IET, you should consult your tax adviser in relation to this matter.
Key Technical Tax Terms
The above information for non-residents uses technical tax terms. A brief explanation of their meaning is set out in Appendix 1 of the Taxation Statement Guides.
Click here for a link to the most recent Taxation Statement Guide
Further Queries
Should you have any queries relating to your specific Securityholding or Distribution Statement you can contact Link Market Services on:
Link Market Services:
Telephone: 1800 226 671 (within Australia) / +61 2 8280 7180
Email: infigen@linkmarketservices.com.au
Website: Link Market Services
Advice relating to personal tax issues should be obtained from your stockbroker, solicitor, accountant or other professional adviser.