Based on current prices TLS Off-Market Buy-Back is a great deal for some investors or a taxation nightmare for others.
We’re expecting to see a flurry of low tax entities (SMSFs in Pension phase etc) buying up TLS into the close today.
Using Tuesday’s closing prices investors with 0% tax entities are crunching numbers and forecasting a 13% return. While all other domestic investors who have to pay tax are forecasting a tax loss with a lumpy income-tax bill in their next tax return. For most investors the buy-back is confusing.
Here is the offer explained step-by-step. Make sure you check with your broker and taxation specialist to check you won’t get caught with the lumpy tax-bill.
