Help with your Swedish tax returns - how to handle Sectra redemption shares 2014
The Annual General Meeting 2014 resolved to carry out a redemption program and SEK 4.50 per share was distributed to Sectra shareholders in October. According to general advice issued by the Swedish Tax Agency regarding the redemption program, 95.3% of the acquisition fees for an original class A or class B share in Sectra AB should be attributed to remaining shares and 4.7% to redemption shares.
The redemption of shares (designated SECT IL B) is declared as sale of shares on Form K4.
Example based on the general advice
A shareholder owns one (1) Sectra share with an acquisition cost of SEK 40 immediately prior to the share split. Accordingly, the acquisition cost allocated to each redemption share should be (SEK 40 x 0.047 =) SEK 1.88. The acquisition cost of the remaining share will then be
(SEK 40 - 1.88 =) SEK 38.12.
If the redemption shares were disposed of (through sale or redemption) at a price of SEK 4.50, the capital gain calculated based on the general advice is (SEK 4.50 - 1.88 =) SEK 2.62.
Example based on the standard rule
Alternatively, the so-called standard rule, according to which the acquisition cost is equal to 20% of the net proceeds received when the shares are sold or redeemed, may be applied to calculate the acquisition cost for the series B redemption shares which are listed on the NASDAQ OMX Stockholm exchange.
If the series B redemption share was disposed of (through sale or redemption) at a price of SEK 4.50, the capital gain calculated based on the standard rule (SEK 4.50 x 0.2 = SEK 0.90) is SEK 4.50 – 0.90 = SEK 3.60.
For further information, please contact:
Helena Pettersson, Chief Investor Relations Officer Sectra AB, ph 46 13 23 52 04, e-mail info.investor@sectra.se
About the Sectra Group
Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2013/2014 fiscal year totaled SEK 853 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com
Tags: