Westfield Group
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Tax Statements 2006
Mailing Contents
Tax Statement
Tax Summary
Tax Return Guide
Mailed to all holders who received one or more of the following:
The Westfield Group (WDC) distribution on 28 February 2006
The Westfield Group (WDC) distribution on 31 August 2005
The dividends/distributions reflected in the Westfield Group 2006 Tax Statement and
Tax Summary are as follows:
Westfield Group dividend/distribution paid as at 31 August 2005
Westfield Group dividend/distribution paid as at 28 February 2006
The Tax Statement and Tax Summary cover all the distributions paid to members by Westfield Holdings, Westfield Trust and Westfield America Trust during the period
1 July 2005 to 30 June 2006.
Please note that the year end of Westfield Trust and Westfield America Trust for taxation purposes is 31 December. Accordingly, the distribution for the six months ended
30 June 2006 (as an interim distribution for the calendar year to 31 December 2006) that is to be paid in August 2006 should be included in your 2007 tax return. Dividends paid by Westfield Holdings are taxable in the income year in which they are paid.
There is one named Tax Statement and one named Tax Summary.
Tax Statement – This shows the taxable amounts of your distributions. Australian resident individuals should use this statement together with the 2006 Tax Return Guide to complete their 2006 tax return.
Tax Summary – This is a summary of the Australian taxation consequences of the distributions you received.
The Westfield Group’s distribution for the six months to June 2006 will be paid
on 31 August 2006.
This distribution (an interim distribution for the calendar year to 31 December 2006) should be included in our 2007 tax return.
The reason for this is that:
The year end of Westfield Trust and Westfield America Trust for taxation purposes is
31 December, and dividends paid by Westfield Holdings are taxable in the income year in which they are paid.
If you were previously a Westfield Holdings investor, you would have used your Dividend Statement to complete your tax return.
Following the Merger, Westfield Holdings shares are stapled to Westfield Trust units
and Westfield America Trust units as part of the Westfield Group. Westfield Group dividends/distributions include dividends/distributions from each entity in the Group. Accordingly, Westfield Group will send you an annual Tax Statement providing details of all dividends/distributions paid during the year in mid-July each year. This includes the information contained on your Dividend/Distribution Statement.
Westfield Trust and Westfield America Trust Distribution Statements do not contain the taxable components of the distributions, however, estimates of the tax advantaged components are given at that time. We have made clear however that these estimates are not to be used in the completing of your tax return.
The only document that should be used to complete your tax return is the annual
Tax Statement which is despatched in July each year.
A Westfield Group Stapled Security comprises three separate assets for capital gains tax purposes (one Westfield Holdings share, one Westfield Trust unit and one Westfield America Trust unit).
For capital gains tax purposes you need to apportion the cost of each Stapled Security and the proceeds on sale of each Stapled Security over the separate assets that make up the Stapled Security. This apportionment should be done on a reasonable basis.
One possible method of apportionment is on the basis of the relative Net Tangible Assets of the individual entities.
Relative Net Tangible Assets (NTA) of entities in Westfield
| Westfield Holdings |
Westfield Trust |
Westfield America Trust |
Westfield Group Total |
|
|---|---|---|---|---|
| 31 Dec 04 | 9.24% | 49.86% | 40.90% | 100% |
| 30 Jun 05 | 7.11% | 51.95% | 40.94% | 100% |
| 31 Dec 05 | 8.05% | 51.66% | 40.29% | 100% |
| 30 Jun 06 | 8.02% | 54.90% | 37.08% | 100% |
| 31 Dec 06 | 7.38% | 58.43% | 34.19% | 100% |
For the 2006 year, Westfield Trust derived capital gains in respect of the disposal of units and shares in GPT and the disposal of some sundry properties. In accordance with the provisions of the Constitution of Westfield Trust, the Manager of the Trust determined to retain 100% of the capital profits in respect of these transactions and these have been reinvested by the Trust to derive future income for investors.
Under the Australian capital gains tax rules, members of the Trust who received the Trust distributions are required to include their proportionate share of the net capital gains made by the Trust in their assessable income. Where available, Westfield Trust elected to apply the “discount method” to determine the amount of the capital gain to include in its taxable income. Accordingly, members may also be able to apply the discount method (if applicable to them) in respect of these gains.
You should consult your tax adviser or other professional adviser.
For the 2006 year, Westfield Trust derived capital gains in respect of the disposal of units and shares in GPT and the disposal of some sundry properties. In accordance with the provisions of the Constitution of Westfield Trust, the Manager of the Trust determined to retain 100% of the capital profits in respect of these transactions and these have been reinvested by the Trust to derive future income for investors.
As the capital profits were retained by the Trust and not distributed to members, there is no CGT concession amount in respect of the 2006 distributions.
Westfield used the discount method as it provides the best outcome for most investors.
You can download this from the ATO website or phone the ATO on 13 28 61 for a copy.
Westfield Trust disposed of some sundry properties in New Zealand. Broadly, as these gains were not subject to tax in New Zealand they are attributed to members of Westfield Trust under Australia’s Controlled Foreign Companies Rules in 2006. These amounts are shown in the Tax Statement and Tax Summary as CFC Income.
We recommend that you contact your accountant or taxation adviser on this matter.
This information is available here.
These represent the tax deferred amounts of the distributions by Westfield Trust and Westfield America Trust. Broadly, this represents the difference between the total cash distribution from the Trusts and the assessable amounts in respect of the distribution.
Special Note for Securityholders who Participated in the Merger
If you participated in the Merger but not through the Exchange by Sale Facility, the initial cost base of the securities acquired is set out in the table below and has been included in the tax guide.
Initial Cost Base of Securities Acquired through Westfield Group Merger
|
|
|
Initial cost base of security acquired in the Merger |
||
|
|
|
Westfield Holdings |
Westfield Trust |
Westfield America Trust |
|
Security held prior to the Merger |
Westfield Holdings |
n/a |
$0.001 |
$0.001 |
|
Westfield Trust |
$0.01 |
n/a |
$1.00 |
|
|
Westfield America Trust |
$0.01 |
$1.00 |
n/a |
|
If you held Westfield Holdings shares prior to the Merger and you participated in the Merger, you may have realised a capital gain from the receipt of tax deferred amounts from the Trusts as the tax deferred amounts are greater than the cost base of your units in the Trusts. We recommend that you contact your accountant or taxation adviser on
this matter.
We have shown the tax deferred amounts of distributions you received from Westfield Trust and Westfield America Trust on your Tax Statement. These amounts are generally not assessable income in your current tax return, however, the tax deferred amounts reduce the cost base of your respective units in Westfield Trust and Westfield America Trust. If your cost base is reduced to nil, any further tax deferred amounts may be taxable as a capital gain.
Apportionment of Proceeds upon Purchase or Disposal of
Westfield Group Securities
The Westfield Group Stapled Security comprises three separate assets for Australian capital gains tax purposes. Each Stapled Security comprises one share in Westfield Holdings, one unit in Westfield Trust and one unit in Westfield America Trust.
For capital gains tax purposes you need to apportion the cost of each Stapled Security and the proceeds on sale of each Stapled Security over the separate assets that make up the Stapled Security. This apportionment should be done on a reasonable basis.
One possible method of apportionment is on the basis of the relative Net Tangible Assets of the individual entities.
In the Tax Return Guide, we have provided for your records the percentage split of the Net Tangible Assets (NTAs) of the entities in the Westfield Group. You can use this split to apportion both the purchase and sale price of Westfield Group Stapled Securities between the three assets that make up the Stapled Security.
This NTA table will be updated each six months following the release of the Westfield Group financial statements. Access to the updated NTA table is available here.
The information contained in this document is intended to provide general information only and does not take into account the objectives, financial situation or needs of any particular person. The information does not constitute financial product investment advice and should not be relied on as such and, in particular, it is not intended to influence you in making a decision in relation to financial products. If you are in doubt as what you should do, you should consult your taxation, financial or other professional adviser.
