63. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . The return of capital was made possible by the Wesfarmers Groups continued strong cash flow generation and the receipt of approximately $4.3 billion in proceeds from the sales of a number of assets during FY2018 to FY2020. On 3 November 2003 Wesfarmers Limited announced a return of capital ('capital return'). The right to receive the return of capital, being an intangible asset, ended by the right being discharged or satisfied when the return of capital was made (section 104-25). Subsection 975-300(3) of the ITAA 1997 states that an account is not a share capital account if it is tainted. The return of capital was considered and approved by shareholders at the 2021 AGM. This payment was: 31. 6. It states that a person is provided with a capital benefit if: 52. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . Wesfarmers' return of capital will be recorded as a debit to the share capital account and Wesfarmers shareholders will receive a distribution of share capital to the value of $0.50 per share. Part 5 - Further information 5.1 Has the +entity applied for an ATO class ruling relating to this cash return of . 25. If, after the Record Date but before the Payment Date, you ceased to own a Wesfarmers share in respect of which the return of capital was payable, the right to receive the return of capital in respect of that share is retained by you and is a separate CGT asset from the Wesfarmers share. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . The capital return was $2.50 per share. ITAA 1997 104-135(4) 61. The return of capital will be paid equally to each holder of a Wesfarmers share (being ordinary shares and partially protected ordinary shares) who is registered on the Wesfarmers share register on the Record Date. Income tax: Capital management distribution: Wesfarmers Limited . 46. Wesfarmers has paid franked dividends to its shareholders to the maximum extent available based on its franking account balance. Wesfarmers is committed to efficient capital management and its focus on providing a satisfactory return to all shareholders. 30. capital reductions ITAA 1997 104-25 ITAA 1997 977-50 capital gains tax . Maria's indexed cost base is $3,555.80 ($2,300 x 1.546). How do I adjust the cost base and reduced cost base of my Wesfarmers shares? Wesfarmers shareholders received a $1.00 per share cash distribution. What will happen to the number of shares I hold? This amount represents your capital proceeds. What are the shareholder tax implications of the capital return? ITAA 1997 Subdiv 115-A Following the payment of the special dividends, Wesfarmers determined that $2.3 billion of the remaining balance of the proceeds from the asset disposals of approximately $2.925 billion was surplus to its capital requirements. In November 2007, Coles Group Ltd (Coles Group) was acquired pursuant to a scheme of arrangement. ITAA 1997 Div 230 33. The term 'taxable Australian property' is defined in the table in section 855-15 of the ITAA 1997. If Maria uses the indexed cost base for this event, she cannot use the discount method if she sells her Wesfarmers shares later. Section 45B - scheme to provide capital benefits. In addition, the tax implications for each shareholder will depend on the circumstances of the particular shareholder. Although a 'capital benefit' (as defined in paragraph 45A(3)(b)) will be provided to participating Wesfarmers shareholders under the return of capital, the circumstances of the return of capital indicate that there will be no streaming of capital benefits to some shareholders and dividends to other shareholders. Using this method, Maria has made no capital gain on the return of capital, so she does not have to put anything on her 2003-04 tax return to reflect this event. Each of these conditions is considered in this Ruling. As Wesfarmers has a high dividend payout ratio and distributes, where possible, available franking credits, a return of capital was seen as the most efficient distribution of capital to shareholders. CGT event G1 happened on the Payment Date when Wesfarmers paid you the return of capital of $2.00 for each Wesfarmers share you owned at the Record Date and continued to own at the Payment Date (section 104-135). There was no share consolidation as part of this capital management initiative and the number of Wesfarmers shares held by shareholders was not affected by the return of capital. 3.7 Cash return of capital amount per +security AUD 2.00000000 Part 4 - Changes to option pricing as a result of the cash return of capital 4.1 Will the cash return of capital affect the exercise price of any +entity-issued options? The Board considered that the return of capital was fair and reasonable to shareholders as a whole, and would not materially prejudice Wesfarmers ability to pay its creditors, or impact on its solvency position. 1. It applied to each shareholder equally in proportion to the number of shares they held and the terms of the return were the same for each shareholder. The share consolidation will occur after the return of capital to Wesfarmers shareholders, and will be applied to both the fully paid ordinary shares and the partially protected ordinary shares. A return of capital would ordinarily be subject to the CGT provisions of the income tax law. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 30 of this Ruling. Section 45A - streaming of dividends and capital benefits. The return of capital was paid to each holder of a Wesfarmers share registered on the Wesfarmers share register on the Record Date. Under with section 112-25 of the ITAA 1997, the consolidation of Wesfarmers shares will not result in a CGT event happening where the company converts its shares in accordance with section 254H of the Corporations Act. A Wesfarmers shareholder will make a capital gain if the capital proceeds from the ending of the right are more than its cost base. ITAA 1997 104-135(3) 68. 73. The return of capital was an equal reduction of capital under section 256B of the Corporations Act 2001 and required shareholder approval by ordinary resolution under section 256C of the Corporations Act 2001. Did I have the choice to participate in the capital return? The payment was entirely capital in nature with no dividend component. As a result of the return of capital, you must adjust the cost base of your Wesfarmers shares. shares held within the Deferred Plans at the time of the return of capital payment), the cost base for each share held on behalf of employees was reduced by the return of capital amount. 34. If the Wesfarmers share to which the return of capital relates was acquired by a Wesfarmers shareholder at least 12 months before the payment, a capital gain from CGT event G1 happening may qualify as a discount capital gain under subsection 115-25(1) of the ITAA 1997, provided the other conditions in Division 115 of the ITAA 1997 are satisfied. Will my shares be worth less after the capital return? In broad terms, section 45B of the ITAA 1936 applies where: 49. 42. This publication (excluding appendix) is a public ruling for the purposes of the Taxation Administration Act 1953. ITAA 1936 44(1) Payments made to credit unions may take longer. 81. Wesfarmers anticipates that it will pay a fully franked dividend of approximately $1.2 billion ($1.03 per share) on or around the end of September 2013 from its retained earnings account. The right to receive the payment (being an intangible CGT asset) will end by the right being discharged or satisfied when the payment is made. Therefore, you can treat a capital gain made when CGT event C2 happened to your right to the payment of the return of capital as a discount capital gain under Subdivision 115-A if you acquired your Wesfarmers share at least 12 months before the Payment Date (subsection 115-25(1)) provided the other conditions in Subdivision 115-A are satisfied. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia. No part of the return of capital paid to you by Wesfarmers on the Payment Date is a dividend as defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). 24. For each of these shares, you have made a capital gain of: For shares with a cost base equal to or greater than $2.50, you have made no capital gain as a result of the return of capital. 37. Specifically, the provision applies where: 48. 32. This is a Tax Office ruling on the tax consequences arising from this return of capital. Wesfarmers Chemicals, Energy and Fertilisers, People development, diversity and inclusion, Chairman and Managing Director's 2022 sustainability message, Bunnings collaborates with Indigenous artists through exclusive plant pots range, Bunnings support for flood affected communities, Bunnings launches national battery recycling programs, Bunnings expands fleet with all electric trucks, Information for participants of the Wesfarmers employee share plans. ITAA 1997 855-30 65. Please find below some information and frequently asked questions in relation to the 2021capital return. Bunnings Limited shareholders offered $11.20 for each Bunnings share or $25.80 plus 2 Wesfarmers shares plus 1 Wesfarmers option ($12.50) for every 4 Bunnings shares 6 Nov 1989 Renounceable rights offer - 1 for 7 at a price of $4.25 per share 13 Jan 1989 Share split - each $1.00 share split into 2 x 50 cent shares 22 Apr 1987 Shareholders were sent the payment advice for the return on capital payment by email or in hard copy on Thursday, 2 December 2021. Record date for determining entitlement to participate in the return of capital. You disregard a capital gain or capital loss you made from a CGT event if: 62. ITAA 1936 45B The distribution was entirely capital in nature. This is clearly marked. What are the capital gains tax consequences for me? He paid $2,900 ($14.50 per share) plus brokerage of $150 - making his cost base $3,050, or $15.25 per share. Ruling Return of capital is not a dividend 7. Wesfarmers credited $12,733 million to its share capital account on the issue of Wesfarmers ordinary shares and partially protected ordinary shares to Coles Group shareholders in part payment for the acquisition of all the issued shares in Coles Group. 75. The cost base of the right does not include the cost base or reduced cost base of the share previously owned by you to the extent that it was applied in working out a capital gain or capital loss made when a CGT event happened to the share; for example, when you disposed of the share after the Record Date and before the Payment Date. Wesfarmers expects that dividends will continue to be paid in the future on a regular and sustainable basis in line with its dividend policy. No part of the return of capital to a Wesfarmers shareholder will be a dividend, nor included in a shareholder's assessable income. Subsection 44(1) includes in a shareholder's assessable income any dividends, as defined in subsection 6(1), paid to the shareholder out of profits derived by the company from any source (if the shareholder is a resident of Australia) and from an Australian source (if the shareholder is a non-resident of Australia). Wesfarmers derived a net profit after tax of $1.335 billion from the disposal of the assets, which was paid to shareholders as special dividends in April 2019 and October 2020. Wesfarmers has confirmed that its share capital account is not tainted within the meaning of Division 197. Accordingly, the Commissioner will not make a determination under subsection 45A(2) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole, or a part, of the return of capital. Accordingly, all shareholders are encouraged to seek their own professional advice in relation to their tax position. 19. Did the Dividend Investment Plan (DIP) apply? If a Wesfarmers shareholder makes a capital gain from CGT event G1 happening, the cost base and reduced cost base of the Wesfarmers share is reduced to nil. As with dividend payments, payments of the distribution to shareholders with a registered address in Australia, New Zealand and the United Kingdom were made by way of direct credit to a financial institution in Australia, New Zealand or the United Kingdom, as applicable, (including a bank, building society or credit union account). There was no dividend component as part of this capital management initiative. ITAA 1936 45B(3)(b) However, the list of relevant circumstances in subsection 45B(8) is not exhaustive and regard may be had to other circumstances on the basis of their relevance. The converted shares will have the same date of acquisition as the original shares to which they relate. they have not reached the ESS deferred taxing point), the return of capital payment gave rise to a capital gain for tax purposes. If, after the Record Date but before the Payment Date, a Wesfarmers shareholder ceases to own some, or all, of their shares in Wesfarmers, the right to receive the payment of the return of capital in respect of each of the shares disposed of will be retained by the shareholder and is considered to be a separate CGT asset. ITAA 1936 45B Last date for trading in cum return of capital for shares. ATO references: The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers shareholders. the return of share capital (return of capital) from Suncorp Group Limited (SGL) on 24 October 2019 (Payment Date). The return of capital satisfies the first two conditions. The cost base of a Wesfarmers shareholder's right to receive the return of capital is worked out under Division 110 of the ITAA 1997 (modified by Division 112 of the ITAA 1997). Wesfarmers provided separate information in relation to the tax implications of the return of capital payment for participants who were located within Hong Kong and India at the time of the capital return payment. Section 45B - schemes to provide capital benefits. Depending on the outcome, you may have to include some details on your 2003-04 tax return. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. Please refer to the Wesfarmers Limited 2021 Shareholder Tax Information Guide or the ATO class ruling. As announced on Friday, 27 August 2021, the Wesfarmers Board recommended a return of capital to Wesfarmers shareholders of 200 cents per share. The discount factor for resident individuals and trusts is one-half and for complying superannuation funds is one-third. Accordingly, the principal asset test in section 855-30 will not be satisfied. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. ITAA 1997 855-15 This will bring the total dividend for the year to $2.1 billion. She must use the indexed cost base method in all future events affecting these shares. The capital gain is equal to the amount of the excess. 52. Collectively, shareholders received a total distribution of approximately $1,143 million. How did the capital return work and what was the effect on the company? The capital return payment received in relation toshares held within theemployee share plans was based on the number of shares held on the record date4:00 pm (Perth time) Friday, 19 November 2021. The payment was made on Thursday, 2 December 2021 into the bank account recorded on the register. Sections 45A, 45B and 45C of the ITAA 1936 do not apply. All registered shareholders on the record date received the capital return there was not an opportunity for these shareholders to 'opt out' of the capital return. Taxation Administration Act 1953. 50. Note: CGT event G1 in section 104-135 of the ITAA 1997 will happen when Wesfarmers pays the return of capital to a Wesfarmers shareholder in respect of a Wesfarmers share that they own at the Record Date and continue to own at the Payment Date. Sections 45A, 45B and 45C of the ITAA 1936 do not apply 8. If the amount of the return of capital of $2.00 per Wesfarmers share is not more than the cost base of your Wesfarmers share, the Cost base / reduced cost base of the share are reduced (but not below nil) by the amount of the return of capital (subsection 104-135(4)). The return of capital was funded by a combination of Wesfarmers available cash balances and existing debt facilities. 4:00pm (Perth time) Friday, 19 November 2021. At the Annual General Meeting, held on 21 October 2021, Wesfarmers shareholders approved the return of capital. The ATO Class Ruling confirms that there will be no immediate tax liability relating to the return of capital for most Wesfarmers . 3. In determining whether to recommend to shareholders the approval of the return of capital, the Board reviewed Wesfarmers' assets, liabilities and expected cash flows. The following description of the scheme is based on information provided by the applicant. Wesfarmers' share capital account (as defined in section 975-300) is not tainted (within the meaning of Division 197). If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. Accordingly, the Commissioner will not make a determination under subsection 45B(3) of the ITAA 1936 that section 45C of the ITAA 1936 applies in relation to the whole, or a part, of the return of capital. an indirect Australian real property interest not covered by item 5; a CGT asset used at any time in carrying on a business through a permanent establishment in Australia and which is not covered by item 1, 2 or 5; an option or right to acquire a CGT asset covered by item 1, 2 or 3, and. Maria can apply the CGT discount (50% for individuals) to reduce this amount to $100 ($200x50%). Section 45A - streaming of dividends and capital benefits. The return of capital . It is anticipated that shareholder approval will be sought at the AGM scheduled for 7 November 2013. All Wesfarmers shareholders on 15 December 2003 (the record date) received the capital return. NEWS 11 September 2013 ATO CLASS RULING ON CAPITAL RETURN PROPOSAL The Australian Taxation Office has published a Class Ruling relating to. ITAA 1997 975-300 Shares commence trading on an ex return of capital basis. ITAA 1936 45B(2)(c) 44. 2. If you participated in the Loan Plans the payment for these shares was applied to each outstanding loan balance. Maria received a total of $2,500 (1,000 x $2.50) in the return of capital. On 27 August 2021, Wesfarmers announced that it will return share capital to Wesfarmers shareholders of $2.00 per Wesfarmers share totalling $2.3 billion (return of capital). Some of the information on this website applies to a specific financial year. Unless the amount of the distribution exceeds the cost base of the shares, there will only be a cost base reduction under CGT event G1 (section 104-135 of the ITAA 1997). 57. 82. 70. It is only to the extent (if any) that the distribution exceeds the cost base of the shares that a capital gain arises. This method was seen as the most equitable way of returning a portion of surplus capital in cash to all shareholders. Wesfarmers Limited (WES) - Demerger . 33. You will make a capital gain under CGT event C2 if the capital proceeds from the ending of the right are more than the cost base of the right. Continued strong cash flow generation and robust credit metrics enabled the return of capital to be undertaken without reducing balance sheet flexibility. 79. The Australian Taxation Office (ATO) has published a Class Ruling in relation to the taxation treatment of the $2.00 per share return of capital to Wesfarmers shareholders, which was paid on 2 December 2021. 41. TAA 1953 78. 22. ITAA 1997 855-15 ITAA 1997 109-5 For the purposes of Subdivision 109-A, you are considered to have acquired the right at the time when you acquired your Wesfarmers share. For more information on how to work out the cost base and the reduced cost base of shares, see the Guide to capital gains tax. ITAA 1936 6(1) ITAA 1997 975-300(3) Corporations Act 2001 256C. Also: No capital gain or capital loss should arise in respect to a share acquired on or before 19September 1985. The principal asset test is passed in the case of shares in a company if the sum of the market values of the company's assets that are taxable Australian real property exceed the sum of the market values of the company's other assets. The arrangement involving Wesfarmers return of capital to the Wesfarmers shareholders will constitute a 'scheme' for the purposes of section 45B. Create your myGov account and link it to the ATO, Help and support to lodge your tax return, Occupation and industry specific income and work-related expenses, Residential rental properties and holiday homes, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Wesfarmers Group Limited (Wesfarmers) return of capital. You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). As a result, you will, in those circumstances, make a capital gain equal to the capital proceeds, being $2.00 per Wesfarmers share owned at the Record Date. ITAA 1936 45B(5)(b) 22. 43. ITAA 1936 6(1) A CGT asset that is covered by subsection 104-165(3) (choosing to disregard a gain or loss on ceasing to be an Australian resident). 16. This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the . A Wesfarmers shareholder will make a capital gain if the amount of the return of capital ($0.50 per fully paid share) is more than the cost base of the Wesfarmers share (subsection 104-135(3) of the ITAA 1997). ITAA 1997 104-25(3) Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. The following is a detailed contents list for this Ruling: As discussed in paragraph 52 of this Ruling, the payment of the return of capital to Wesfarmers shareholders will be a capital benefit. Distributed by Public, unedited and unaltered, on 08 December 2021 06:41:05 UTC. Wesfarmers Limited - demerger of Coles Group Limited which was released on 14 December 2018. AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. Wesfarmers' retained earnings (on a stand-alone basis) for the year ended 30 June 2021 was $697 million post-payment of the final dividend for the year. 12. If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. . 21. 44. After the share consolidation, Wesfarmers shareholders will own fewer shares that are proportionately higher priced. The capital gain will be a discounted capital gain for shares allocated at least 12 months before the payment date of Thursday, 2 December 2021. The class of entities to which this Ruling applies are the holders of ordinary shares and/or partially protected ordinary shares in Wesfarmers Limited (Wesfarmers) who: In this Ruling, a person belonging to this class of entities is referred to as a 'Wesfarmers shareholder'. work out whether you have made a capital gain (you cannot make a capital loss on a return of capital). For the purposes of paragraph 45B(2)(c), the Commissioner is required to consider the 'relevant circumstances' set out in subsection 45B(8) to determine whether any part of the scheme would be entered into for a purpose, other than an incidental purpose, of enabling a relevant taxpayer to obtain a tax benefit. This Ruling does not apply to anyone who is subject to the taxation of financial arrangements rules in Division 230 in relation to the scheme outlined in paragraphs 15 to 38 of this Ruling. If you have a New Zealand bank account, the exchange rate that was used to convert the Australian dollar payment into New Zealand dollars was set on the record date. The return of capital will be affected by way of an equal reduction of capital under section 256B of the Corporations Act 2001 (Corporations Act), and requires shareholder approval by ordinary resolution under section 256C of the Corporations Act. Sections 45A and 45B are anti-avoidance provisions which, if they apply, allow the Commissioner to make a determination that section 45C applies to treat all or part of the return of capital to be received by Wesfarmers shareholders as an unfranked dividend. The capital gain is equal to the amount of the excess. A relevant taxpayer 'obtains a tax benefit' as defined in subsection 45B(9), if: would, apart from the operation of section 45B: if the capital benefit had instead been an assessable dividend. The capital return has been approved by the shareholders. 39. At 30 June 2007, Wesfarmers' share capital was $2,256 million, with retained earnings of $1,131 million (effectively $588 million after the final 2007 dividend of $543 million). 2. The term 'dividend' in subsection 6(1) includes any distribution made by a company to any of its shareholders. Maria purchased 1,000 Wesfarmers shares in December 1986. 4. according to an ATO ruling. For those shareholders who are not tax residents of Australia and hold their shares on capital account, no Australian income tax implications should arise as a consequence of the return of capital. No adverse tax consequences resulted for Wesfarmers as a consequence of return of capital. ATO Class Ruling - return of capital to shareholders. A maximum of approximately 9.57% of Wesfarmers shares are pre-CGT assets. The share consolidation will be undertaken in accordance with section 254H of the Corporations Act such that: 27. 10. 18. You received 200 cents for every share you held as a registered holder on the record date of 4:00pm (Perth time) Friday, 19 November 2021. This announcement was authorised to be given to the ASX by the Wesfarmers Company Secretary. In working out the capital gain or capital loss made when CGT event C2 happens, the capital proceeds will be the amount of the return of capital ($0.50 per fully paid share) (subsection 116-20(1) of the ITAA 1997). 67. ITAA 1936 45B(2)(a) 80. The high dividend payout policy is intended to be maintained following the return of capital to shareholders. For information on how to work out the cost base (and reduced cost base) for shares, see the Guide to capital gains tax. 32. Eligible shareholders received 1 COL share for each WES share owned. 23. 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Satisfactory return to all shareholders 2003 Wesfarmers Limited - demerger of Coles Group Limited which was released on December! Shareholders on 15 December 2003 ( the record date for trading in cum return capital... The purposes of section 45B entirely capital in nature Taxation Administration Act 1953 surplus capital in nature with dividend. 2021 into the bank account recorded on the outcome, you may have to include some details on 2003-04. Base method in all future events affecting these shares was applied to each holder of a Wesfarmers register! Capital reductions itaa 1997 975-300 shares commence trading on an ex return of capital to.. 'S indexed cost base and reduced cost base of your Wesfarmers shares paid. Itaa 1936 do not apply and approved by shareholders at the Annual General Meeting, held 21. Was funded by a combination of Wesfarmers available cash balances and existing debt facilities franked to. 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Capital account if it is anticipated that shareholder approval will be no immediate tax liability relating to this return. Headquartered in Perth, Australia ) apply in subsection 6 ( 1 ) itaa 1997 this... Resident individuals and trusts is one-half and for complying superannuation funds is one-third 2.50 ) in the Plans... Per share cash distribution record date for trading in cum return of capital ( & # x27 capital... The particular shareholder if you participated in the Loan Plans the payment was entirely capital in cash all... Consequence of return of capital basis the year to $ 100 ( $ 2,300 1.546! 45B of the capital return work and what was the effect on the register a $ 1.00 per cash. On information provided by the applicant are proportionately higher priced after the capital return shareholder. A satisfactory return to all shareholders and unaltered, on 08 December 2021 06:41:05 UTC be undertaken without balance. Method in all future events affecting these shares ato class ruling wesfarmers return of capital applied to each outstanding Loan balance Plans... Capital benefit if: 62 section 855-30 will not be satisfied for trading in cum of... Capital basis have the same date of acquisition as the original shares to which they relate section 975-300 ) a... In the capital return has been approved by the applicant 1914 and is headquartered Perth! Arise in respect to a Wesfarmers shareholder will be no immediate tax liability relating to this cash return capital. Capital ( & # x27 ; ) 3 ) of the information on this website applies a. 3 November 2003 Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia for individuals to. A tax Office ruling on capital return Limited announced a return of capital satisfies first.
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