# Tax treatment for ANZ Bonus Options Plan



## gearloose (13 August 2013)

Hi there
Does anyone know how ANZ BOPs should be treated for tax purposes (inividual return)?

in a dividend reinvestment Plan (DRP) arrangement you are effectively paid the cash & then you repurchase the shares from that cash/ YOu also get full details of franking arrangements.

My reading (various ATO docs etc) is that they are not income (there is no franking or unfranked amounts & no imputation credits, therefore they are effectively an asset/capital so would be taxed on sale as a capital gain event?

ATO have referred me to ANZ stating that if its a bonus issue then the company is required to advise tax implications to its shareholders

ANZ (computershare) won't give advice is that they are not allowed/qualified to give tax advice because it differ depending on circumstances

The last thing I want to do is not declare them as income & then end up with a huge tax bill. 

THks in advance


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## PinkGirl (24 August 2013)

see http://www.anz.com/australia/aboutanz/GroupInformation/downloads/bop_drp.pdf - page 13

you should get your own tax advice if you don't know how to treat them for income tax purposes


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## Redbeard (3 February 2017)

Amazing they didn't cite the Privacy Act!!!

Hmm,,  another non-answer. 

When I asked my accountant about them he had no idea what they were!!

https://www.shareholder.anz.com/sit...terms_and_conditions_updated_january_2015.pdf
is the new link.

Even though the section on Tax says nothing ....   
But its all in the wording (4.1) 

"amount of each Eligible Dividend ... payable to a ... Participant ...  will be foregone ... . However, the Board shall issue to the ... Participant Shares determined under rule 4.4."

So its not income as a dividend. Its a share issue subject to capital gains.

The ATO should have told you to look here
https://www.ato.gov.au/General/Capi...?anchor=No_amount_assessed#No_amount_assessed

argghh
Redbeard


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