When you invest in Cromwell Property Group you acquire Cromwell Property Group stapled securities (ASX code: CMW). Each stapled security consists of a share in Cromwell Corporation Limited (“CCL”) and a unit in the Cromwell Diversified Property Trust (“DPT”).
In December 2006, CCL and DPT were stapled (referred to as the Stapling Transaction). This means that shares in CCL and units in DPT can only be transferred or traded together as Cromwell Property Group stapled securities on the Australian Securities Exchange. However, CCL shares and DPT units remain separate assets for taxation purposes.
Cromwell’s year end for tax purposes is 30 June. The total annual distribution and tax components are advised in the Attribution Managed Investment Trust Annual (“AMMA”) Statement sent to securityholders in August each year. Any dividends and franking credits from your shares in CCL and distributions in relation to your units in DPT need to be separately disclosed in your income tax return.
Cromwell Property Group Australian Tax Transparency Report
To encourage increased public disclosure of tax information by companies that operate in Australia, the Board of Taxation has released a voluntary tax transparency code. The code recommends a set of principles and standards to guide Australian businesses on the public disclosure of tax information with the desire to enhance the community’s understanding of the corporate sector’s compliance with Australian tax laws.
Cromwell Property Group is pleased to present its Australian Tax Transparency Report which provides an overview of Cromwell’s approach to tax and tax contributions made to Australian state and Commonwealth governments. Cromwell Property Group is committed to managing its tax obligations in a responsible, open and transparent manner.
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Attribution Managed Investment Trust Regime
The Responsible Entity of DPT made an irrevocable election to be an Attribution Managed Investment Trust (“AMIT”) for all years beginning from 1 July 2017.
Your AMMA Statement provides the components of the distribution that have been attributed to you each financial year.
For tax purposes, the distribution from DPT comprises separate components including interest income, taxable other income, capital gains and foreign income. Your attributed amounts of these components are outlined on your AMMA Statement.
Australian resident taxpayers include in their assessable income their attributed amount of DPT’s determined trust components (including any net capital gains of DPT). These attributed amounts are included in a resident taxpayer’s assessable income for tax purposes irrespective of when the cash in respect of the attributed amounts is received.
For more information regarding the AMIT regime please visit the Australian Taxation Office’s website at www.ato.gov.au.
Income Tax Components
Stapled security holders who receive distributions from Cromwell will be sent an Annual Tax Statement and Income Tax Guide for the relevant income tax year. The Annual Tax Statement details the tax amounts to be included in each stapled security holder’s income tax return. The Annual Tax Statement will be provided in August each year, along with the Income Tax Guide (See “Income Tax Guides” below).
A duplicate copy of your recent Annual Tax Statements can be downloaded, free of charge by clicking on the link to Link Market Services at: www.cromwell.com.au/registry. Alternatively, for a replacement statement contact Link Market Services Limited on 1300 550 841 (within Australia) or +61 1300 550 841 (outside Australia) between 8.00am and 7.30pm, AEST Monday to Friday. A replacement statement charge may be payable to Link Market Services.
Stapled securityholders should rely on their Annual Tax Statement when completing their income tax return. For information purposes only, the below document outlines the applicable income tax component percentages for past income tax years.