Litigation Capital Manag... Share Discussion Threads

[l2b] 16/11/2023 11:06

MAE CARDACI -v- FILIPPO CARDACI
Family dispute re trust execution - you can read facts yourself.
LCM acting on behalf of Mae.

Mae (i.e. LCM) won the original case. 
Last week - Appeal dismissed (tho Cross-appeal allowed).  ;
Matter remitted for an assessment of damages.

The case has been going 6-7 years so that would make it a direct funding. 

Sections on costs:- 
452.......As at July 2020, LCMO had incurred costs of $1,904,418 and anticipated expending costs of $2,458,500 to the conclusion of the trial.

454. The trial judge recorded the appellants' submission that, based on the anticipated trial costs of $2,458,500, if Mae received any capital or income from the trusts, she would be under an obligation to pay at least $9,834,000 to LCMO.

www8.austlii.edu.au/cgi-bin/viewdoc/au/cases/wa/WASCA/2023/158.html?stem=0&synonyms=0&query=lcm

[someuwin] 09/11/2023 08:35

LIT client PAT £8m valuation. Claim against India progressing well.

"The Company is aware that on 30 September 2023 the Times of India reported that, based on information from the Geological Survey of India and the Additional Chief Secretary of Mines, the gold deposit at the site could be worth over US$1 billion."

[dadbod] 03/11/2023 00:14

Highlights
• The ICSID ad hoc Committee has rendered its decision on the Stay of Enforcement of
the Award following the 11 October 2023 hearing
• Tanzania must provide a written undertaking from authorised government officials
within 45 days binding Tanzania to the following undertakings to continue the stay of
enforcement:
 That Tanzania will abide by the final annulment decision when delivered by the
ad hoc Committee
 That Tanzania will recognise the Award and pay the full amount of the Award plus
interest to the Claimants within 45 days of the final decision on annulment
 That Tanzania will not subject the payment of the Award to any enforcement
proceedings in domestic courts in any jurisdiction or to the scrutiny of Tanzanian
courts
• If Tanzania fails to provide the written undertaking as outlined above within 45 days,
the stay on enforcement will be lifted
• Indiana as the majority shareholder of the Claimants will now provide a guarantee that
in the event the annulment request is granted in favour of Tanzania, it will enable the
Claimants to reimburse Tanzania monies secured through enforcement corresponding
to the annulled portion of the Award
• The total amount payable by Tanzania under the Award now stands at US$112.9 million
to date plus costs of US$4.28 million
• Interest continues to accrue at the rate of approximately US$1 million per month

[brileyloucan] 02/11/2023 11:52

I did hear back from Mary and the point was noted about tax inefficiency. I think the more people who raise concerns the more likely they will invest time in finding an alternate payment mechanism.

[boozey] 02/11/2023 07:56

Thank you for that update L2B

[robsy2] 02/11/2023 07:52

Thanks Briley for the leg work on the dividend issue.
As has been said, the divi policy is not tax efficient, so we need to lobby for buy backs.

[williamcooper104] 01/11/2023 20:49

Yep from memory there's not WHT on the franked part of a dividend Little like REITs and dividends - from the main reit rental business they are subject to property withholding tax as no tax paid, but if from other sources then there is no withholding tax as tax would have already been paid on that income

[waterfall city] 01/11/2023 13:08

A final thought on the dividend, as the dividend is partly franked my understanding is that it would only be the unfranked part of the dividend that would fall into the 15% withholding tax bracket- way too complicated!

[l2b] 01/11/2023 10:45

IDA TH today - annulment update by Friday

"The trading halt is requested pending an announcement to the market in relation to a decision from the ICSID ad hoc Committee concerning the stay of enforcement of the Award against the United Republic of Tanzania"

cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02734589-6A1178421?access_token=83ff96335c2d45a094df02a206a39ff4

[luweiluwei] 01/11/2023 09:23

In the end 51% of the dividend is lost to taxes for me.
I always assumed they would do a small dividend as extra compensation for CEO and chairman.
I hope they keep it to a minimum, unless they change HQ to the more dividend friendly UK.
Buybacks at these valuations would be much better.

[brileyloucan] 31/10/2023 16:58

Agreed I have reached out to Mary and requested they pay a de minimis dividend in future (maybe just to be on the list) and utilise the rest via a share buyback if they can't use it in the business.

[williamcooper104] 31/10/2023 16:54

It's rubbish Nobody bought this for a divi So just a waste of cash paying unnecessary tax

[brileyloucan] 31/10/2023 16:32

I have been in touch with HL regarding my LCM holdings which are in an ordinary share account, an ISA and a SIPP. Had the following response:

Thanks for getting in touch.

Looking over the recent dividend from your holding in Litigation Capital Management Limited, I can confirm the dividend was subject to 30% Australian Withholding Tax which is deducted from the dividend at source.

For us to apply reduced rates of withholding tax to dividend from the countries mentioned, we would need to verify that all holders within our pooled nominee accounts were eligible for the reduced rates. As we're unable to do this, dividends will be Taxed at the full rate of withholding Tax.

Whether it's possible to reclaim any of this amount depends upon your personal taxation situation. If possible, an application would need to be made to the relevant foreign tax office.

We don't offer a service to reclaim any foreign withholding tax on behalf of clients due to the complexities of the tax regimes in other countries.

However, we can produce ad-hoc dividend tax vouchers that you can use with your claim. Should you want one of these, please send us a secure message with confirmation of the specific stock and dividend payment date you’d like the voucher for.

Finally in regards to your SIPP account, I'm afraid that under HMRC rules and regulations it states you are unable to gain a benefit outside of the SIPP wrapper on a holding held within the SIPP.

Only the beneficial owner of the shares would be eligible to submit a reclaim, within the SIPP this would Hargreaves Lansdown but within other accounts this would be client. Hargreaves Lansdown is unable to confirm each individual clients tax status and is unable to action a bulk reclaim. Therefore following these rules you are unable to submit a withholding tax reclaim for holdings held within the SIPP wrapper.

So in summary can apply directly to the Aussie tax authorities myself for the 15% refund on the ISA and shares account but in the SIPP it is lost. I have found the relevant info here hxxps://www.ato.gov.au/business/international-tax-for-business/in-detail/australian-income-of-foreign-residents/refund-of-over-withheld-withholding--how-to-apply/ but looks quite complex.

Will also be contacting LCM to ask them to pay the dividends in future in a more tax efficient way for UK investors holding shares in nominee accounts.

BL

[dadbod] 31/10/2023 07:45

I'm an Aussie holder and I've been taxed by the UK.

[williamcooper104] 28/10/2023 08:01

I got 85 percent - my broker appears to have applied the treaty rate of 15 percent 30 percent is the non treaty rate So if you are in the UK then you ought to be able to claim it I don't remember filling out any paper work for my broker to get the treaty relief but I did own a few ausie stocks a while ago so it's possible that I did and have forgotten

[joe say] 28/10/2023 07:55

Had the same surprise myself today.

I'll be asking them regarding a potential move to the UK - why have the listing and then suffer this?

[williamcooper104] 27/10/2023 14:18

There isn't - ISAs are a pain for WHT Better to hold in a taxable account that way you get offset of the WHT; you should get it back in a SIPP but don't think it's as easy as the W8BEN thingy Why rather than pay a dividend and do a few large one of buybacks that weaken the balance sheet they would be better not paying a dividend and just using the cash that would have used for a divi to regularly buy back stock

[luweiluwei] 27/10/2023 14:10

Australian withholding tax is 30%.
Write to IR to ask them if/when the HQ moves from Australia to the UK.

[jgh03] 27/10/2023 14:09

I've also received only 70% of the amount expected.

In LIT's final results (section 18. Equity - dividends) it says: "On 18 July 2023, the Directors declared a partially franked final dividend for the year ended 30 June 2023 of 2.25 pence per ordinary share, to be paid on 27 October 2023 ..."

So I looked up what a franked dividend is and found some websites which offered a description.




As I understand it this is when the company has paid 30% corporation tax in Australia and then shareholders can treat this as tax that they have paid or receive a tax refund. (Happy to be corrected here.)

That's all very well for shareholders in Australia, but what is the situation for UK investors ? My LIT shares are held in an ISA - is there a way to reclaim all or part of this 30%, perhaps using a mechanism like the W8BEN form for US shares ?

[someuwin] 27/10/2023 14:06

Yup - AJBell paying out 1.573p instead of 2.25p which is 30% lower. Don't know why!

[waterfall city] 27/10/2023 12:23

It looks like only 70% of the expected figure, so looks like a 30% withholding tax, but should this be 15% as theres a tax treaty with the uk?

[greenknight1] 27/10/2023 08:36

Hi all, dividend arrived this morning and funds received are lower than expected. Anyone more knowledgeable than me can explain this? Possibly taxed as it's an Aus located company?

[citywolf1] 26/10/2023 10:22

Does anyone have any insight into how Canaccord might be thinking about this buyback? Seems odd to me that they bought a few a couple of weeks ago at 100+, and then nothing since, especially since the shares are now trading in the 90s.

I guess it's working out for shareholders while the shares tick lower as we will get more bang for our buck, and given the increasing risk of market volatility this buyback could be a good backstop in the event of a big selloff. That said, I presume it is not standard practice to try and time the market when doing these buybacks.

[luweiluwei] 22/10/2023 09:33

126600 shares bought back so far at just above £ 1

[brad_k] 21/10/2023 07:48

What has happened to the share buyback? Are they hoping to buy at lower levels?