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BR Prd 05/09
05 Dec 2005
5 December 2005 to 31 March 2009

Bonus shares issue

SkyCity Consolidated Group

Under this ruling, where there is an option to redeem the shares and the shareholders elect to retain the shares and then sell them, the bonus is a non-taxable bonus issue and does not constitute dividends. Amounts derived on sale of the bonus shares are not gross income for certain shareholders.