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.