PharmX Technologies ATO Ruling Announcement

PharmX Technologies Limited (ASX: $PHX) has announced that the Australian Taxation Office (ATO) has issued a ruling on the income tax consequences for shareholders of PharmX who received the return of share capital payment of 0.75 cents per PharmX ordinary share held on 4 December 2023. The ruling applies to shareholders who were registered on the PharmX share register on 27 November 2023 and held PharmX shares on capital account on the Record Date.

ATO Ruling Details

The ATO has determined that no part of the Return of Capital paid to shareholders by PharmX on the Payment Date is a dividend as defined in the Income Tax Assessment Act 1936. This is because the entire amount of the Return of Capital has been debited against PharmX's share capital account. Therefore, subject to certain exceptions listed in the ruling, no part of the Return of Capital needs to be included in shareholder's assessable income as a dividend under the ITAA 1936.

Summary of ATO Ruling and Outlook

The ATO ruling provides clarity on the tax implications for shareholders of PharmX Technologies regarding the return of share capital payment. Shareholders who met the specified criteria are not required to include any part of the Return of Capital in their assessable income as a dividend. This ruling offers transparency and guidance to PharmX shareholders, ensuring compliance with tax regulations. Looking ahead, PharmX Technologies remains dedicated to advancing healthcare through transformative technology and aims to continue driving growth by connecting the pharmacy industry and enabling smarter business decisions through data-driven solutions.