Tax Statements 2008
Mailing Date: 1 July – 2 July 2008
Tax Return Guide
Distribution History Schedules (Westfield Holdings, Westfield Trust &
Westfield America Trust)
Mailed to all holders who received one or more of the following:
The Westfield Group (WDC) distribution paid on the 31 August 2007
The Westfield Group (WDC) distribution paid
What distributions/dividends are included in the 2008 Tax Return?
The Dividends/Distributions reflected in the Westfield Group 2008 Tax Statement and Tax Summary are as follows:
Westfield Group dividend/distribution paid as at 31 August 2007
Westfield Group dividend/distribution paid as at 28 February 2008
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 2007 to 30 June 2008. 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 2008 (as an interim distribution for the calendar year to 31 December 2008) that is to be paid in August 2008 should be included in your 2009 Tax Return. Dividends paid by Westfield Holdings are taxable in the income year in which they are paid.
What distributions/dividends are included in the 2008 Tax Return?
There is one named Tax Statement and one named Tax Summary
- Tax Statement – this shows the taxable amounts of your distributions and the appropriate labels for these amounts to be included on the Australian tax return for individuals. Australian resident individuals should use this statement together with the 2008 Tax Return Guide to complete their 2008 Tax Return
- Tax Summary – This is a summary of the Australian taxation consequences of the distributions you received.
In what Tax Return do I include my August 2008 distribution and dividend and when will this be paid?
The Westfield Group’s distribution for the 6 months to June 2008 will be paid on 31 August 2008. This distribution
(an interim distribution for the calendar year to 31 December 2008) should be included in your 2009 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.
Why do I get a Tax Statement? What about my Dividend Statement?
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 America Trust units and Westfield Trust units as part of the Westfield Group. Westfield Group distributions include distributions from each entity in the group. Accordingly, Westfield Group will send you an annual Tax Statement in July each year, providing details of all distributions paid during the year. This includes the information contained on your Dividend Statement.Westfield Trust and Westfield America Trust Distribution Statements do not contain the taxable components of the distributions however estimates of the tax deferred components are given at that time. However, as stated on the distribution statements 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.
If I sell my Stapled Securities, how do I calculate my capital gains tax?
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.The historic Net Tangible Asset apportionment for entities in the Group are reflected in the table below.
|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%|
|30 Jun 07||7.54%||59.22%||33.24%||100%|
|31 Dec 07||8.07%||62.46%||29.47%||100%|
Why do I have a capital gain from receiving my distributions?
For the 2008 tax year, Westfield Trust derived capital gains in respect of the sale of part of its interest in Westfield Parramatta and Westfield Doncaster and the disposal of certain sundry properties. In accordance with the provisions of the Constitution of Westfield Trust, the Responsible Entity of the Trust determined to retain 100% of the capital profits in respect of these transactions. These profits have been retained to assist in funding the Trust’s future operations and investments which are expected to derive additional income for the Trust. Even though the capital profits were retained by the Trust under Australian tax law members of the Trust must include in their assessable income their proportionate share of the Trust’s net capital gains. Further, as the capital profits were retained by the Trust and not distributed to members, there is no CGT concession amount in respect of the 2008 distribution.
Am I entitled to a discount on the capital gain I have realised from receiving tax deferred amounts?
This will depend on your individual circumstances. You should consult you tax advisor or other professional advisor.
Why do I have a CGT concession amount of nil?
For the 2008 tax year, Westfield Trust derived capital gains in respect of the sale of part of its interest in Westfield Parramatta and Westfield Doncaster and the disposal of certain sundry properties. In accordance with the provisions of the Constitution of Westfield Trust, the Responsible Entity of the Trust determined to retain 100% of the capital profits in respect of these transactions. These profits have been retained to assist in funding the Trust’s future operations and investments which are expected to derive additional income for the Trust.As the capital profits were retained by the Trust and not distributed to members, there is no CGT concession amount in respect of the 2008 distribution.
Where do I get a copy of the “Personal Investors Guide to Capital Gains Tax” or other ATO publications referred to in the Tax Return Guide?
You can download this from the ATO website or phone the ATO for a copy on 13 28 61.
Why do I have CFC income from receiving my distributions?
Westfield Trust disposed of certain sundry properties in New Zealand. Broadly, as the capital 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 2008. 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.
Where can I get the breakdown of the taxation amounts on a percentage basis?
This information is available at Investor Services on the Westfield Group website:
What are the tax deferred amounts shown on the Tax Summary?
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.
Why is the WFA tax deferred amount so high compared to last year?
The tax deferred amount varies from year to year depending on the activities of the Group during the year and hence what amounts are included in the assessable income of the trust for the relevant year. The tax deferred amount for the June 2008 year shouldn’t necessarily be seen as an indication of what future tax deferred amounts will be.
Investors receive a cost base reduction from the tax deferred amount of Trust distributions. Where can this been seen?
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.
What is so important about the information on NTA?
Apportionment of Proceeds Upon Purchase or Disposal of Westfield Group SecuritiesThe 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 CGT 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.The NTA Table is updated each six months following the release of Westfield Group financial statements and can be accessed at:
Will the Westfield Pro-rata Entitlement Offer have any impact on my Westfield Group 2007 Tax Statement?
WestfieldPro-rata Entitlement Offer – position for retail InvestorsThe Westfield Group raised $3.0 billion of equity in July 2007 via a Pro-rata Entitlement Offer. Securities issued under the Offer had an initial cost base of $19.50, including those issued under the Retail Bookbuild.A summary of the taxation implications for Westfield Pro-rata Entitlement Offer is contained in section 8 of the Prospectus and Product Disclosure Statement for the Offer.