Author Topic: LILA - Liberty Global Latin America tracker  (Read 98799 times)

skanjete

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Re: LILA - Liberty Global Latin America tracker
« Reply #230 on: October 31, 2017, 10:12:48 AM »
Does anyone know when the LILA spinoff will materialise?

And under what form will they do it, by way of dividend?

thank you.

Full spin off was scheduled "before end of the year", but might be pushed back because of the situation caused by the hurricanes. We'll know more during the Q3 call, I'm guessing.

I'm assuming that the tracking stock will stay the same, it'll just now be asset-backed.

Thank you.

I was in fact wondering whether that could be a taxable event.

I remember the takeover of TWC by Charter has been taxed here. I had to pay 30% tax on my total Charter position because the taxman assumed that old Charter got liquidated which is a taxable event.

Likewise, dividends are taxable as well, just as liquidations are taxable, so I wonder whether I should sell my LILA's in advance of the spin-off.


Munger_Disciple

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Re: LILA - Liberty Global Latin America tracker
« Reply #231 on: October 31, 2017, 11:53:36 AM »
Quote
I remember the takeover of TWC by Charter has been taxed here. I had to pay 30% tax on my total Charter position because the taxman assumed that old Charter got liquidated which is a taxable event.

I don't think the exchange of old CHTR shares for new was a taxable event, so I am not sure what you are trying to say.

In general, the words "Malone or Liberty" and "taxes" are mutually exclusive.

Liberty

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Re: LILA - Liberty Global Latin America tracker
« Reply #232 on: October 31, 2017, 12:12:17 PM »
skanjete, where are you located? The rules for these things might be different where you are. Here, the TWC-CHTR-BHN merger didn't trigger anything taxable (in Canada, and same in the US afaik).
« Last Edit: October 31, 2017, 01:19:46 PM by Liberty »
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Jurgis

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Re: LILA - Liberty Global Latin America tracker
« Reply #233 on: October 31, 2017, 12:15:33 PM »
Quote
I remember the takeover of TWC by Charter has been taxed here. I had to pay 30% tax on my total Charter position because the taxman assumed that old Charter got liquidated which is a taxable event.

I don't think the exchange of old CHTR shares for new was a taxable event, so I am not sure what you are trying to say.

In general, the words "Malone or Liberty" and "taxes" are mutually exclusive.

skanjete is in some European country (Sweden?). Unless you are familiar with tax laws of that country, you probably should not give tax advice. ;) From what I have seen different countries tax very different events/things/whatever. Assuming that country X tax laws are same/similar to US/Canadian laws is a recipe for pain.

@skanjete: I think your question is tough, since you really need someone who knows your local tax laws and also knows the Liberty spinoff from tracker stock from legal standpoint. I doubt that there's someone who is qualified to give that kind of legal advice here. Though perhaps I am wrong...
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Munger_Disciple

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Re: LILA - Liberty Global Latin America tracker
« Reply #234 on: October 31, 2017, 12:29:20 PM »
Quote
Unless you are familiar with tax laws of that country, you probably should not give tax advice.

What's wrong with you??? You are implying things that are untrue. I am not giving anyone tax advice!

skanjete

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Re: LILA - Liberty Global Latin America tracker
« Reply #235 on: October 31, 2017, 02:08:56 PM »
I know the charter event wasn't taxable in the US.

But here (indeed an European country) tax laws are arcane. Moreover, certains taxes are collected through the banks and banks are being held liable by the government if some taxes that are due aren't being collected. So in case of the slightest doubt, the banks will tax. Thereafter you have the right to complain and try to recoup some of your money, but good luck with that...

As I said the charter deal has been taxed although shareholders didn't earn a dime in the transaction. Another deal that was taxed was the split of Google in 2014. Shareholders got extra shares by way of dividend which were taxed. Again no economic gain for the shareholder, but a tax for the state. Heck I've even been taxed some buy backs by a company because they considered it to be a dividend!

And although I tried, there's no way you can get an opinion from the banks in advance on how they will treat a transaction. This is not a great country for special situation investing!!!

 
« Last Edit: October 31, 2017, 02:10:50 PM by skanjete »

Sunrider

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Re: LILA - Liberty Global Latin America tracker
« Reply #236 on: October 31, 2017, 02:46:23 PM »
Open an in account - they mostly know what they are doing

skanjete

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Re: LILA - Liberty Global Latin America tracker
« Reply #237 on: November 01, 2017, 02:57:24 AM »
Open an in account - they mostly know what they are doing

Do you mean an interactive broker account?

Sunrider

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Re: LILA - Liberty Global Latin America tracker
« Reply #238 on: November 01, 2017, 12:35:28 PM »
Open an in account - they mostly know what they are doing

Do you mean an interactive broker account?
yes - autocorrect - IB account, if you're in the EU, the account will be held in the UK (likely) under the current passporting rules. You may get a more intelligent treatment than from your local bank.

Happy

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Re: LILA - Liberty Global Latin America tracker
« Reply #239 on: November 02, 2017, 06:41:24 AM »
In Germany the Charter-TWC takeover didn't trigger taxes. In other situations I received spin-offs and some were treated as a taxable dividend and others weren't. My lawyer also said he can't tell this in advance. The authorities seem to judge this after the fact and sometimes it gets overruled years later (like a Google stock-split that first triggered taxes). So I will probably sell my Global shares before the spin-off, but obviously that's not ideal.