If they can get approval for it from ATO, CSE will likely elect...

If they can get approval for it from ATO, CSE will likely elect to have the distribution treated as a capital return, rather than a dividend because the majority of shareholders will be on MTRs of higher than the company tax rate. Massive benefit for the majority of shareholders if that's the case. Te benefits:

- no tax paid on the CR as its not treated as income
- while cost based reduce by amount CR for CGT purposes, the SP will drop by the amount of the CR. Since the CR amount will be approx the SP amount, hardly any CGT if a person then immediately sells CSE shares. Eg if CSE SP drops to 1c, then your capital gain on sale is effectively 1c per share

Of course whether they can get approval is another question. Last time they sold a mining asset so was possible. This time they are selling an investment asset, so not sure whether ATO will allow the same treatment. They may need to alter the company classification to an investment type company.

Cdchi1