West Australian focused gold exploration and development company, Rox Resources Limited (“Rox” or “the Company”) (ASX: RXL) is pleased to confirm that the Australian Taxation Office (“ATO”) issued Class Ruling 2021/63 (“Class Ruling”) in respect of the Australian income tax implications of the demerger of Cannon Resources Limited (ASX:CNR) (“Demerger”) for shareholders of Rox.
- Class Ruling confirms that demerger tax relief is available for
Australian tax resident Rox shareholders who hold their Rox
shares on capital account.
- Receipt of Cannon Resources shares is not an assessable
- Exercise price of options adjusted for in-specie distribution.
ATO Class Ruling
In summary, the effect of the Class Ruling is that, in respect of an Australian
tax resident Rox shareholder (who holds their Rox shares on capital account)
who is eligible for, and chooses, demerger tax relief:
- that Rox shareholder will be able to disregard any capital gain that
arises from the capital reduction that occurred in connection with the
- the receipt of Cannon Resources Limited (“Cannon”) shares under
the Demerger is not an assessable dividend.
Rox has prepared a tax information guide to assist Australian resident
shareholders of Rox in the calculation of the cost base allocation of their Rox
and Cannon shares and is attached to this announcement
The Class Ruling is available on the ATO website.