Capital loss claims made easier
David Potts
Sun Herald
23 May 2004
SHAREHOLDERS of defunct companies will no longer have to ingratiate themselves with the liquidator so as to claim a capital loss.
Thanks to a change in the budget and a new service from the free delisted.com.au, set up by former Australian Shareholders Association chairman Tony McLean , shareholders will no longer have to wait for years before they can claim a tax loss on a collapsed company.
Often when a company morphs into an unused shell company, shareholders never get the chance to claim a loss, unless they can find somebody who will buy the worthless shares from them.
At the moment, only a declaration from a liquidator or, even further down the track, a company being deregistered can trigger a tax claim.
But in the budget Treasurer Peter Costello said declarations would be extended to receivers and administrators, giving shareholders an earlier out.
Even so, shareholders remain last on the list of concerns for insolvency practitioners. In fact, they don't count at all administrators represent creditors and employees only.
But delisted, which tracks dead companies, will buy worthless shares in the last two months of each financial year at a nominal amount so that investors can crystallise a capital loss for tax.
Capital losses can only be used to reduce capital gains.
“Pasminco is a good example, but there are many smaller companies that should not be overlooked," McLean said.
The website lists 52 dead companies that can now produce a capital loss even though the liquidator has not issued a declaration.
It charges $76 or $126 (when duties apply) for processing the paperwork.
It also has liquidator declarations that can be downloaded for such disasters as Pan Pharmaceuticals, HIH, Harris Scarfe, One.Tel , Centaur Mining, New Tel, Liberty One, Seafood Online, Cinema Plus, Normans Wines, Harts Australasia and Satellite Group as well as earlier ones including Hooker Corp, Mount Lyell Mining, Bond Corp and Clutha.
Almost 400 deregistered companies are listed, including Bibury, ForBio , Giant Resources, Panfida and Qintex.
Every company that has been delisted, or changed its name, is also on the website.
