How to handle Tabcorp (TAH) and The Lottery Corporation (TLC) demerger

Content also available for tax entities or on our global site.

Sharesight makes it easy for investors to handle corporate actions (even complicated demergers) and track the capital gains tax implications. The benefit of using Sharesight to track the TabCorp (TAH) and The Lottery Corporation (TLC) demerger also ensures that you maintain an accurate record of your portfolio performance.

Please note this is based on currently available information. We will include further changes as new information becomes available.

1 – Click on Tabcorp, TAH on the Portfolio Overview Page, to go to the Individual Holding Page.

2 – Click ‘Enter a new Trade or Adjustment’.

3 – On the pop-up window, select ‘Adjust Cost Base’ from the transaction type dropdown.

Based on the Demerger Scheme Effective, set the:

4 – ‘Date of trade’: 25 May 2022

5 – ‘Demerger calculator’: Set the ratio to 17.76 : 82.24

6 – ‘Cost Base Reduction’: Enter the amount given in the Demerger Calculator.

Example If TAH cost base as of the Scheme date is $42,950, Cost Base reduction is $35,322.08 ($42,950 x 82.24%).

Take note of the Cost Base Reduction amount

7 – Comment: Tab Corp and The Lottery corporation demerger. The Scheme Record Date is on 1 June 2022.

8 – ‘Choose a file’: to help keep your records in order, you can attach the Lottery Corporation Demerger Scheme Effective letter.

9 – Click ‘Save this trade’.

10 – Click ‘Add or Import Holdings’.

11 – On the left hand side of the page, search for The Lottery Corporation or TLC to locate the holding.

12 – Select ‘Opening Balance’.

13 – Select ‘Opening Balance Date’ as 25 May 2022.

14 – Input ‘Cost base’: Use the Cost Base Reduction amount from Wesfarmers.

Example If TAH cost base as of the Scheme date is $42,950, Cost Base reduction is $35,322.08 ($42,950 x 82.24%).

15 – Input ‘Quantity’ as 1 The Lottery Corporation share to every 1 Tabcorp share.

16 – Click ‘Save this holding’.

Example Own 1000 Tabcorp as of the Scheme date - received 1000 The Lottery Corporation Shares from the demerger

The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details.

Last modified on November 22, 2022 UTC

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