If you disposed of shares to a company under a buy-back arrangement, you may have made a capital gain or capital loss. The time you make the capital gain or capital loss will depend on the particular buy-back offer.
For an off-market share buy-back announced and undertaken by a listed public company after 7:30 pm (AEDT) on 25 October 2022, no part of the buy-back price will be treated as a dividend. Instead, the entire buy-back price is treated as capital proceeds For more information, see Improving the integrity of off-market share buy-backs.
Under other off-market buy-backs, where a dividend is paid as part of the buy-back price, the amount excluding the dividend is generally your capital proceeds for the share.
If the information provided by the company or any class ruling that has been issued in relation to the buy-back is not sufficient for you to calculate your capital gain or capital loss, you may need to seek advice from us or a recognised tax adviser.
Continue to: Keeping records