Tax Information
BBC Stapled Securities are made up of BBCT Units and BBCL Shares stapled together (i.e. traded together). For income tax purposes, each BBCT Unit and BBCL Share, should, be considered separately.
INVESTMENT IN BBCT
TAXATION OF TRUST DISTRIBUTIONS FROM BBCT
For income tax purposes, a unitholder of BBCT should include in its assessable income its share of the net income of BBCT. In the event that the net income of BBCT (as determined for income tax purposes) is different to the amount that is considered distributable income by the Responsible Entity of BBCT for the purposes of the Trust Deed, different tax consequences may occur for BBCT unitholders.
INCOME TAX TREATMENT OF BBCT
Under the general taxation rules relating to trusts, Australian tax resident beneficiaries are liable to taxation on that portion of the trust’s net (taxable) income to which they are presently entitled.
The Responsible Entity will advise each unitholder of the portion of the net income of BBCT that the unitholder is presently entitled to in respect of each year of income, after the end of each year of income.
Any tax losses generated by BBCT must remain within BBCT and cannot be distributed to investors for application against their individual taxable income. Any such tax losses may be carried forward and applied to reduce any future taxable income of BBCT, subject to BBCT satisfying the relevant tax loss carry forward requirements.
Further information can be found in the taxation report on page 126 of the Prospectus & Product Disclosure Statement.
INVESTMENT IN BBCL
INCOME TAX TREATMENT OF BBCL
The taxable income of BBCL and its wholly-owned Australian tax resident subsidiaries should be subject to income tax at the corporate tax rate (currently 30%).
TAXATION OF DIVIDENDS FROM BBCL
Investors will potentially receive distributions of profits from BBCL in future income periods. Such distributions will generally be viewed as the provision of dividends for income tax purposes, depending on the particular arrangement being contemplated at the time.
BBCL will maintain a franking account and provide all documentation usually associated with the payment of dividends.
Further information can be found in the taxation report on page 126 of the Prospectus & Product Disclosure Statement.