How to do a scheme of arrangement in Reckon Personal Plus

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  • Updated 6 months ago
Tabcorp took over Tatts group by a SOA.  Tatts received 0.80 Tabcorp shares and $0.265 cash for every share held, and a $0.016 Tatts special dividend.  How is this processed in the investments section of Reckon as I don't see a SOA option and the transfer to the new security is not working
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Leanne Veitch

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Posted 6 months ago

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Shakir, Employee

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Hi Leanne, thanks for reaching out to us.

Here is the knowledge base article to handle such transaction in Reckon Accounts Personal range software.

Hope it helps

Regards
Shakir
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John Campbell

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When recording these transactions, my main aim is to preserve the capital value I am holding.

First, the special dividend should be recorded as a dividend, hopefully franked.

Then, the cash return is a return of capital so will reduce the capital value of Tatts shares you held.

You now have the reduced/residual capital value of your Tatts shares.

If you don't have TABCORP shares, you could simply do a restructure to 0.8 new shares per old share and rename the security, ie a non-capital gains event.

Or you could document sale and buy transactions for the same capital value. Two possible capital values could be used.

1) I would document sell/buy for the residual capital value of Tatts shares, documenting that no capital gains event took place.

2) Alternatively you could document sell/buy for the current market value of Tatts shares. This may be a capital gains event.

The documentation supplied by Tatts will probably indicate if this is required, ie a capital gains event needs to be declared.

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Leanne Veitch

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Thanks....will give it a go