Core Exploration shareholders get a win from the ATO
In welcome news for shareholders, Core Exploration Ltd (ASX:CXO) has announced that its application to participate in the JMEI scheme has been accepted by the Australian Taxation Office and it has received an allocation of up to $750,000, which can be distributed to eligible shareholders.
The JMEI scheme, which was passed by the Federal Parliament in March 2018, enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on “greenfield” exploration.
To be eligible to receive a pro-rata distribution of JMEI credits from CXO, , shareholders must have applied for and be issued shares in the company after 23 April 2018 and no later than 30 June 2018.
The allocation of JMEI credits are to be distributed to all eligible shareholders on a pro-rata basis.
The JMEI scheme come into effect from 1 July 2017 for a four-year period based on an annual application process. Australian resident shareholders that are issued with JMEI credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies).
Note that, receiving a JMEI credit could have tax consequences and shareholders who are issued JMEI credits by CXO should obtain independent tax advice specific to their personal circumstances.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.