Tony acquired 1,000 shares in X Co (a resident public company) for $10 each in August 2000. In January this year X Co returned $7 of capital to its shareholder in respect to each share they held. The shares were not cancelled. The Following month Tony sold all his X Co shares for $20 each. Advise Tony of the CGT consequences of the sale. How would your answer differ if X Co returned $13 per shares instead of $7; and how whould your answer differ is X Co had cancelled the shares?

Answer rating: 100% (QA)

The CGT Capital Gains Tax consequences for Tonys sale of X Co shares depend on various factors inclu... View the full answer