NZX advises that IRD has today provided notice confirming that it considers that NZX’s proposed return of capital to shareholders on a pro rata basis, and cancellation of one in every ten shares held is not in lieu of a dividend and therefore non-taxable up to NZX's available subscribed capital of approximately $22 million. Amounts distributed in excess of this will be a taxable distribution and fully imputed.
The return of capital requires approval by a special resolution of shareholders at the annual meeting of NZX on 30 April 2012. If the resolution is passed, NZX will seek a final order from the High Court of New Zealand sanctioning the return of capital.
Further detail on NZX’s return of capital to shareholders is in the notification released to the market on 22 February 2012.