POOLED DEVELOPMENT FUNDS (PDF) PROGRAM*
The objective of the PDF Program is to increase the supply of capital to growing Australian small and medium-sized enterprises (SMEs).
The PDF Program closed to new registrations in 2007 although the Program benefits remain for existing PDFs. As at February 2014, there were 30 registered PDFs in Australia.
Austock Group Limited has been registered as a PDF since 1999. Various tax concessions are available to both the Company and its shareholders under Australian tax legislation as follows:
- The PDF itself is subject to a tax rate of 15% on investment income and 25% on all other income.
- Shareholders (both resident and non-resident) are exempt from capital gains tax on disposal of their PDF shares.
- Resident shareholders are exempt from income tax on unfranked dividends. With regards to franked dividends, they may choose to be either exempt or assessed.
- Non-resident shareholders are exempt from Australian tax (including dividend withholding tax) in respect of both franked and unfranked dividends.
- Capital losses on the sale of PDF shares are not deductible.
- Borrowing costs associated with acquiring PDF shares are not deductible to the extent that PDF shares produce exempt dividends.
* This information is intended to be a guide only. Investors should seek appropriate independent professional advice that considers the taxation implications in respect of their own specific circumstances.