Tower obtains ATO class ruling on capital return

Tower Limited [NZX:TWR] has announced it has obtained a Class Ruling from the Australian Taxation Office (ATO) concerning its capital return implemented on March 20, 2025. The return involved approximately NZD45 million, with one ordinary share cancelled for every ten shares held by shareholders on the March 19, 2025 (Record Date). The Class Ruling confirms that for Australian tax resident shareholders, the payment will not be treated as a dividend, nor will it be deemed an unfranked dividend paid out of profits under sections 45A and 45B of the Income Tax Assessment Act 1936. The share cancellation will trigger a capital gains tax (CGT) event C2, where a capital gain arises if the capital proceeds from the cancellation exceed the share's cost base, and a capital loss occurs if the proceeds are less than the reduced cost base. Tower encourages Australian shareholders to review the full Class Ruling available on the ATO's website.