Telstra buyback tax risk

Following on from our guide to Tesltra's share buyback on 4 Sep, an article in the Financial Review today has highlighted a tax risk. The risk is for people that choose to replace the shares they sell back to Telstra by buying further shares, and the potential problem is that the Tax Office might classify the transaction as a 'wash sale' – where shares are bought and sold within a short period for the main purpose of obtaining a tax benefit. In such circumstances, the Tax Office may disregard the transaction, so that the tax benefits are lost. We're only...

Following on from our guide to Tesltra's share buyback on 4 Sep, an article in the Financial Review today has highlighted a tax risk. The risk is for people that choose to replace the shares they sell back to Telstra by buying further shares, and the potential problem is that the Tax Office might classify the transaction as a 'wash sale' – where shares are bought and sold within a short period for the main purpose of obtaining a tax benefit. In such circumstances, the Tax Office may disregard the transaction, so that the tax benefits are lost.

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