Capital Return - ATO Class Ruling obtained

Market Information
NZX Limited
Level 1, NZX Centre
11 Cable Street
WELLINGTON

Company Announcements Office
ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
AUSTRALIA

15 June 2022

Capital Return - ATO Class Ruling obtained

On 9 March 2022 Tower Limited (Tower) implemented its capital return of approximately NZ$30.4m to its shareholders, with 1 ordinary share for every 10 ordinary shares held by shareholders on 8 March 2022 (Record Date) being cancelled.

In relation to the capital return Tower applied to the Australian Taxation Office (ATO) for a Class Ruling on behalf of its Australian tax resident shareholders (Australian Shareholders) to confirm that:

• no part of the payment received by the Australian Shareholders under the capital return will be treated as a dividend for Australian tax purposes; and
• the share cancellation gives rise to a capital gains tax (CGT) event C2. The effect of CGT event C2 is that a capital gain arises to the extent that the capital proceeds from the cancellation exceeds the cost base of the share. Where the capital proceeds are less than the reduced cost base, a capital loss would arise.

That Class Ruling has now been obtained and a full copy of it will be made available on Tower’s website: https://www.tower.co.nz/investor-centre/annual-shareholder-meetings/.

Australian Shareholders are encouraged to review the Class Ruling in full, in particular the requirements which Australian Shareholders must satisfy to be able to rely on the Class Ruling, which include that Tower shares must have been held on capital account on the Record Date.

If you are unsure as to the effect of the ATO Class Ruling on your tax position, you should seek independent taxation advice.

ENDS


This announcement has been authorised by Tower Chief Executive, Blair Turnbull.

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability
Tower Limited
Mobile: +64 021 815 149
Email: [email protected]

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