Question 3 (time permitting) George is a fund manager with Bathurst Pty Ltd. His strategy is to buy shares in companies that have a low price-earnings ratio, and when the shares rise in price, he switches his investment to different companies. In June 2004 George caused the fund to buy 1 million shares in the Ajax Mining Ltd at $4 per share. In June this income year, Ajax Mining Ltd's shares are listed at $12 each and George decides it is time to sell. The fund also has a parcel of 2 million shares in Hill Ltd which were purchased in the year 2000 for $10 each and are now worth $4 each. On 30 June this income year, George causes the fund to sell the 1 million shares in Ajax Mining Ltd, as well as all the shares in Hill Ltd at $4 each. Two months later, George asks the analysts at the Bathurst Pty Ltd to analyse all financial documents of Hill Ltd including the profit and loss account, the balance sheet and a new prospectus just issued by Hill Lid. Based on a favourable report concerning the prospects of Hill Lid, George instructs Bathurst Pty Ltd to purchase 2.5 million shares in Hill Ltd at $4.50 each. Required: Advise the tax implications of the disposal of the shares on 30 June this income year