COW cost base

Hi all,

This thread may be redundant quite quickly, but I am doing some admin today and saw that the COW ruling has been published by the ATO, but I don't see it on the new AMAL website yet. It's here:

https://www.ato.gov.au/law/view/document?DocID=CLR/CR201854/NAT/ATO/00001

Paragraphs 65 and 66 are probably what most people care about:

"65. For the purposes of the cost base and the reduced cost base apportionment under subsections 125-80(2) and (3), the Commissioner accepts the use of the volume weighted average price (VWAP) of Tawana Shares as traded on the ASX over their last 5 trading days immediately before the Record Date, less the market value provided in accordance with the independent valuation of Cowan Lithium x 85%. This results in a reasonable approximation of the relative market value of Cowan Lithium Shares and Tawana Shares as $0.0714 per share and $0.3821 per share respectively.

66. Based on the valuation mentioned in paragraph 65 of this Ruling, 1.65% of the shareholder's original cost base and reduced cost base for the Tawana Shares becomes the first element of the cost base and reduced cost base of Cowan Lithium Shares, and 98.35% becomes the first element of the cost base and reduced cost base of Tawana Shares (section 125-85 and subsections 125-80(2) and 125-80(3))."

For anyone who likes to keep on top of their paperwork, it is probably best to make note of that adjustment before dealing with the additional A40 shares.

Cheers