This case gives rise to important implications for the taxation position for shareholders participating in share buyback schemes initiated by listed Companies. The High Court held that an amount of $514.00 - which represented the market value of the shares sellback rights of the shareholder/taxpayer at the date issued by the St George Bank - was assessable income according to ordinary concepts of taxation law. Commissioner of Taxation v. McNeil
Amendments to the Land Tax Management Act 1956 (NSW) allow certain Unit Trusts to be treated on a confessional basis for Land Tax purposes (by treating them as a "Fixed Trust"). Action may be needed to make the relevant Trust Deed compliant with the law. The Land Tax threshold is then applied to the Trust's land holdings, reducing the Land Tax payable.
