Macquarie Wrap Tax Guide Macquarie Investment Manager Macquarie Investment Consolidator Macquarie Adviser Services Dated June 2011
2 Macquarie Investment Manager and Macquarie Investment Consolidator are Investor Directed Portfolio Services operated by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237492 (MIML). Term deposits may be deposits with Macquarie Bank Limited (MBL) ABN 46 008 583 542. MIML may allow term deposits issued by other financial institutions to be held on the investment menu. Other than term deposits with Macquarie Bank Limited, investments made through Macquarie Investment Manager and Macquarie Investment Consolidator are not deposits with or other liabilities of MBL or of any Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither MBL, MIML, nor any other member company of the Macquarie Group guarantees the repayment of capital or the performance or any particular rate of return of the investments purchased through Macquarie Investment Manager and Macquarie Investment Consolidator. This document has been prepared as a general guide only. This is not personal advice. This Tax Guide has been prepared without taking into account your objectives, financial situation or needs. Therefore, before preparing an income tax return, you should consider the appropriateness and relevance of the Tax Guide, taking into account your specific circumstances. Macquarie recommends that the general assumptions and tax policies section are read thoroughly because in some instances the policies applied may not be applicable to your specific circumstances and if this is the case, particular amounts may need to be recalculated using other reports available. Macquarie strongly recommends that your income tax return is prepared in conjunction with advice from an accountant or tax adviser. This Tax Guide covers the tax policies and assumptions which Macquarie has relied upon in preparing your Tax Report Summary and Tax Report Detailed but should not be relied upon as a substitute for professional taxation advice.
Tax policies and general assumptions This Tax Guide provides information on the tax policies and assumptions used, and the information Macquarie has relied upon, to prepare the Tax Report Summary and the Tax Report Detailed in order to determine how amounts received should be treated for taxation purposes. It will help you in the preparation of your income tax return for the year ended 30 June 2011. Third Party Access Wrap investors can grant their accountant, SMSF administrator or other financial representative secure access to view and download reports for their Wrap account, normally only visible to their adviser. With direct access to account reporting, their financial representative will have the information at their fingertips to complete their client s end of year accounting paperwork. Our dedicated Wrap tax website contains detailed tax information relating to tax reporting including: information explaining tax technical concepts in more detail soft copies of this guide and the Accountants Guide to the Tax Report glossary of terms, and Australian Taxation Office (ATO) links and resources. Should more detailed information be required, the following links may be useful: advisers refer to the Macquarie Wrap website accountants macquarie.com.au/advisers/wraptax. Tax Report Summary The Tax Report Summary provides you with a summary of your taxable position in respect of your account for the year ended 30 June 2011. It provides: consolidated tax information required to complete your income tax return references to ATO TaxPacks for individuals, trusts and self managed superannuation funds, and references to the Tax Report Detailed so that you can determine how amounts disclosed in the Tax Report Detailed are used to arrive at the amounts disclosed in the Tax Report Summary. Tax Report Detailed The Tax Report Detailed provides you with a detailed breakdown, on a distribution basis, of all income that you have derived for the year ended 30 June 2011. It also contains information about any asset disposals and any expenses that have been incurred throughout the year. The Tax Report Detailed has the following sections: Cash (C) Managed Funds and Listed Trusts (T) Listed Securities (S) Other Income (O) Disposal of Capital Items (R) Excess Assessable Gains (X) Denied Franking Credits (DF), and Fees and Expenses (F). The Tax Report Detailed will always disclose the Cash (C) and Fees and Expenses (F) sections but will only show those other sections of the Report that are relevant to your account. The Tax Report Detailed will therefore not disclose sections where your investments either did not distribute assessable income or were not disposed of during the year. This year you may receive additional supporting materials at the end of your Tax Report. The additional information contains the key assumptions explained in this guide and may also contain explanations for unusual items reported to you. 3
Tax policies and general assumptions Legislative developments The Taxation of Financial Arrangements (TOFA) regime began on a mandatory basis from 1 July 2010. Taxpayers can choose to go into this regime on an elective basis where they do not satisfy the eligibility criteria. Macquarie has not considered the application of this regime to your account on the assumption that one of the exclusion criteria has been met and you have not elected into the regime. We recommend you seek independent taxation advice to confirm whether or not this regime applies to your account. In May 2010, the Australian government announced that, to encourage personal savings, it would provide individual investors a 50% tax discount on up to $1,000 of interest income earned on certain savings products. Since then, another announcement was made confirming that the discount will apply from 1 July 2012 and will initially only apply to the first $500 of interest income derived. At the time of writing this Guide, no legislation had been enacted to give effect to this change. As such, this change has had no impact on the generation of your 2011 Tax Report. During the past year, there have been a lot of announced measures impacting the taxation of trusts as well as the Colonial First State (CFS) decision in January 2011. Macquarie has continued to rely on information provided by product issuers regarding the income flowing through listed trusts and unlisted managed funds on our investment menu. Further, we have not made any determinations as to whether any trust or fund is a fixed trust as defined and hence not precluded the flow through of any franking credits. We recommend you seek independent external advice to confirm whether our treatment is appropriate to your circumstances. The foreign investment fund (FIF) provisions have been repealed and at the time of writing this guide, have not been replaced. It is anticipated that the Foreign Accumulation Fund (FAF) provisions will soon be enacted. If these do become operative prior to 30 June 2011, any income assessable under the FAF provisions will be disclosed as CFC income on your Tax Report Summary & Tax Report Detailed. 1. Cash (C) Cash income reported includes distribution and payments from interests in: Macquarie Cash Consolidator Account (CCA) Macquarie Cash Management Trust (CMT) Macquarie Cash Management Account (CMA) any term deposits, and any interest refunds from margin loans. CMT income is included as assessable income on the date the income is declared. Any amount paid in respect of your CMA is included as assessable income on the date the interest is paid. Any amount paid in respect of term deposits is the gross amount received. Where you have terminated your term deposit early, any break costs have been netted off against the cash received. Any interest refunds on margin loans are included as assessable income based upon the date of payment of the interest. The amount of interest refunded in respect of your margin loan is the amount provided by your margin lender. Should this not reconcile to information you have received from your margin lender, please contact your margin lender directly. Also disclosed is the amount of any withholding tax deducted where you have not provided a TFN, ABN, exemption or you are a non-resident. 2. Managed fund and listed trust income (T) Managed fund and listed trust income reported may include distributions of: Interest Dividends Capital gains Foreign income Other income Franking credits Foreign income tax offsets Non-assessable amounts (such as tax deferred, tax free and return of capital amounts), and Expenses paid. Income from managed funds and listed trusts is included as assessable income on an accruals (present entitlement) basis. Any credits distributed through managed funds and listed trusts are disclosed separately under the applicable categories of credits. The Net Cash Distribution received has been grossed up to include TFN amounts withheld (if any) and non-resident withholding tax deducted (if any). 4
Distributed capital gains Any capital gains distributed to you by managed funds and listed trusts are disclosed in the Tax Report Detailed on a distribution by distribution basis. The distributable capital gain is doubled and reported as a gross discounted capital gain. The Tax Report Summary undertakes a net capital gains tax (CGT) calculation, which is limited by the assumptions listed in section 5. These amounts are to be used by you to determine your overall CGT position that is to be disclosed in your income tax return at the capital gains item. These amounts are not to be included in the trust distribution section of your income tax return. This is consistent with ATO guidelines (readily available on the ATO website). Note however that there is an ATOID that states that, on a strict interpretation of the current tax law, these distributed capital gain amounts are to not only be included in the CGT section of your income tax return but also in the trust distribution section with an accompanying deduction (equal to the amount of the distributed capital gain) to ensure there is no double taxation. Given this discrepancy, we recommend that you seek independent taxation advice to determine the tax disclosure that is more appropriate to your individual circumstances. Tax deferred, tax free and return of capital distribution amounts These components require adjustments to the cost base and/or reduced cost base (as relevant) of the asset. Any such adjustments have been made as at the accrual date of the distribution. 3. Listed securities income (S) Income from listed securities may include: Franked dividends Franking credits Unfranked dividends Conduit foreign income Interest income Foreign income Foreign income tax offsets, and/or Expenses paid. The Tax Report Summary and Tax Report Detailed include income from listed securities as assessable when: franked, unfranked and conduit foreign income is paid or credited foreign income is paid or credited, and/or interest income from convertible notes is declared. Listed investment companies (LICs) Where you are a resident and you receive a dividend from a LIC, to the extent that the dividend is franked, either fully or partially, then the franking credits attached to that franked dividend are also included in your assessable income on a paid or credited basis. You may be entitled to a tax offset equal to the amount of the franking credits attached to the dividend received. Where the dividend received is unfranked, that amount is the only amount which is included in your assessable income. If you are a non-resident and receive a dividend, the withholding tax rules may apply. Where applicable, the amount of the allowable deduction associated with the attributable part of a LIC distribution will be reported under the expenses paid column of the Tax Report Detailed, and under Other in the expenses section of the Tax Report Summary. Where you are an investor other than an individual or trust, the amount of the expense will vary depending upon your circumstances. Where an attributable part has been disclosed by the product issuer, you may be able to obtain from Macquarie a copy of the relevant dividend statement where you had a holding in these securities at any time during the 2011 tax year and received a dividend. Macquarie will advise at the time of request whether or not this information is available. 4. Other income (O) Other income includes any gains or losses made on convertible notes and any product issuer rebates to which you may be entitled. Other income is included as assessable income when the amounts are paid. Convertible notes Interest bearing convertible notes issued prior to 14 May 2002 are generally treated as traditional securities for income tax purposes. Broadly, this means that any profit or loss on the disposal, conversion or redemption of a traditional security is assessable or deductible under special provisions. These amounts appear in the Other Income (O) section of the Tax Report Detailed. For securities issued on or after 14 May 2002, the treatment of conversions and exchanges differs from that described above. In general terms, no assessable gain or deductible loss will arise upon conversion into ordinary shares. Rather, the taxing point will be deferred until the disposal of the ordinary shares that were acquired on conversion or exchange. The gain or loss on the ultimate disposal of the ordinary shares will be subject to the CGT provisions for the period before as well as after any conversion or exchange. The Net (cash) amount received has been grossed up to include TFN amounts withheld (if any) and non-resident withholding tax deducted (if any). 5
Tax policies and general assumptions 5. Disposal of capital items (R) In calculating capital gains (or losses) for your account, Macquarie has made the following assumptions: you are an Australian resident for tax purposes all investments held in your account have been acquired as capital assets, and only investments held within your account have been included in the Tax Report Summary and Tax Report Detailed. The Tax Report Summary and Tax Report Detailed does not take into account: assets which are held outside your account assets that have been included in the Portfolio Valuation Report as below the line assets, such as retail managed investments, and/or any prior year losses or other carried forward balances. Macquarie has provided advisers, on your behalf, with the ability to make certain elections which will impact the manner in which your realised capital gains or losses are calculated. The three elections open to an adviser are: Specific Parcel Selection allows an adviser to select specific parcels to allocate against securities that have been disposed of during the 2011 tax year. Advisers do not have the ability to select parcels in relation to certain security types, such as instalment warrants, or under certain circumstances, for example some corporate actions. First In First Out (FIFO) calculates capital gains and losses such that the first parcel purchased has been deemed to be the first parcel sold. Where no election has been made by your adviser, Macquarie uses the FIFO method to calculate realised capital gains or losses. Minimum Gain disposals will be allocated against the open parcel that will generate the lowest capital gain or maximum capital loss. For assets that have been transferred into the Service, cost base information, acquisition dates and the number of shares or units are based on the information supplied to Macquarie at the time of the transfer. Types of capital gains There are three types of capital gains that you may derive. These are: 1. Discounted capital gains These occur when you have held, or are deemed to have held, an asset for at least 12 months. In this case, you are able to apply a discount that reduces the taxable amount of the capital gain. For individuals and trusts, the discount is 50%. For complying self managed superannuation funds, the discount is 33¹ ³ %. Companies are not entitled to any discount. 2. Indexed capital gains These occur when you acquired an asset prior to 21 September 1999, and held it for at least 12 months. The indexation method allows the cost of the asset to be increased by an indexation factor that is based on the CPI movements up to September 1999. Where this method is chosen, the discount method cannot apply. 3. Other capital gains These occur when an asset has been held for less than 12 months, and are calculated by simply taking the proceeds from the sale and deducting the cost base of the asset. Note that you may only have a capital gain or loss in respect of an asset that was purchased after 20 September 1985. For any assets that you have transferred into your account with an acquisition date prior to 20 September 1985, they will be treated as a pre-cgt asset and no gains or losses will be reported in respect of these assets. 6
Taxable Australian Real Property (TARP) vs Non-Taxable Australian Real Property (Non-TARP) Gains TARP capital gains arise where: an investor has a more than 10% interest (direct or indirect) in an asset, and the total underlying assets related to real property (by way of market value) are more than the total value of the underlying assets not related to real property. Australian residents are assessed on both TARP and non- TARP capital gains they derive during an income year. Nonresidents are only assessed and subject to final withholding tax on TARP capital gains they derive during an income year. In addition, intermediaries (ie those entities which are residents for Australian tax purposes but have non-resident investors) may need to use TARP and non-tarp breakdowns to determine their own withholding tax obligations. Where you have disposed of an asset you hold in the Service, Macquarie has assumed that you do not hold a greater than 10% interest in that asset and has disclosed the resulting capital gain as a non-tarp capital gain. Where you have received a distribution of a capital gain, Macquarie has relied upon the product issuer statement for the classification of TARP and non-tarp capital gains. The amount disclosed on the Tax Report Summary reflects the disclosure provided by the product issuer. The Tax Report Detailed does not separately identify TARP and non-tarp capital gains. Instead, the amounts reported are the combined total of TARP and non-tarp gains distributed. 6. Excess assessable capital gains (X) These arise where the following has taken place: an asset has made payments of tax deferred and/or return of capital amounts these non-assessable payments have reduced the cost base of the asset, and the cost base of the asset has been reduced to zero. Where this has occurred, any further distributions of these non-assessable amounts will give rise to an immediate capital gain at the time the non-assessable amount is paid or declared depending on the source of the payment. Where the asset is a unit in a managed fund or listed trust, this type of capital gain is known as an E4 capital gain. Alternatively, where the asset is a share, this type of capital gain is known as a G1 capital gain. Note that you cannot make a loss as a result of a G1 or E4 event. Normal discounting rules and indexation may apply to reduce the amount of capital gain. Where the relevant conditions have been met, Macquarie has applied the discount method to reduce the amount of the capital gain. An E4 gain will be recognised on an accruals (present entitlement) basis. A G1 gain will be recognised on the date the non-assessable distribution is paid. Note that we have only reported E4/G1 events on underlying assets for some stapled securities. Rollover relief for capital gains (and losses) Macquarie has adopted a consistent methodology for the treatment of gains (and losses) realised on securities eligible for scrip for scrip rollover relief and/or demerger rollover relief (as relevant) during the tax year. Where eligible for relief, Macquarie has elected to apply the relief to defer CGT consequences for investors in the securities affected. Where ineligible to elect rollover relief, Macquarie has realised those shares and/or units and subsequently re-acquired the same value of shares and/or units in the newly merged, acquired or demerged entity. Capital gains or losses reported on the Tax Report Summary and Tax Report Detailed have been reported as assessable when the asset was disposed of during the current tax year. Where demerger rollover relief has been applied to a security held during the year (which has been the case for all demergers in the 2011 tax year), a demerger dividend is deemed to be non-assessable non-exempt income of the shareholder. Macquarie has reported this income on the Wrap Tax Report as tax exempt under non-assessable income. 7
Tax policies and general assumptions 7. Denied franking credits (DF) Macquarie has applied the 45 Day Rule, being the most common of the franking credit anti-avoidance rules, to determine if any franking credits attributed to you within the Tax Report Summary and Tax Report Detailed have been denied. In disclosing the credit amounts that may have been denied under the 45 day rule, Macquarie has undertaken broad based calculations having regard to the assumptions as stated below and the limited information regarding your personal circumstances. In applying this rule, the following has been taken into consideration and/or assumed: no consideration has been given to positions that may reduce the overall exposure to an underlying security by more than 30% for a particular distribution or share buy-back all assets are held at risk there are no related payments all buys and sells between the dividend declaration date and the ex-dividend date are cum dividend, and for preference shares, the 90 day rule has been applied taking into consideration all buy and sell transactions up to 15 August 2011 only. The amount of credits which have been denied has been disclosed in the Tax Report Summary and in the Denied Franking Credit (DF) section of the Tax Report Detailed. The amount of denied credits has been separately disclosed for listed securities and managed funds and listed trusts. 8. Fees and expenses (F) Included in expenses on the Tax Report Summary and Tax Report Detailed are: Government charges Administration fees Adviser fees, and Interest paid on margin loans. All fees reported on the Tax Report Summary and Tax Report Detailed include Goods and Services Tax (GST) unless expressly stated otherwise. To the extent that you have claimed a credit for the GST reported on the expenses disclosed, the fees reported may need to be adjusted depending on your individual circumstances. Adviser fees The tax treatment of these fees is determined by the nature of the services provided by the adviser directly to you. Macquarie has provided advisers with the ability to elect how to treat these fees in the Tax Report Summary and Tax Report Detailed. Where your adviser has not advised Macquarie of the treatment of the Adviser fees or where your adviser has instructed Macquarie that the Adviser fees are unallocated, Macquarie has reported these fees in the Unallocated column of the Tax Report Detailed. Macquarie has relied on your adviser s instructions and has not considered whether the treatment is correct. You may wish to seek independent taxation advice in relation to the treatment of these fees and discuss the appropriate treatment with your adviser. Establishment fees have been treated as non-deductible. Interest on margin loans Interest reported on the Tax Report Summary and Tax Report Detailed in respect of margin loans has been provided by the margin lender and may include prepaid interest (where applicable). Macquarie has assumed that the amount of interest on your margin loan is fully deductible. This may not be the case depending on your individual circumstances and Macquarie strongly recommends that you seek independent taxation advice as to the deductibility of interest on the margin loan. If you have changed your margin lender throughout the year, interest shown on your Tax Report Detailed and Tax Report Summary will only apply to the lender attached to your account as at 30 June 2011. Please note that the amount of interest reported is the amount provided to Macquarie by your margin lender. Should this, together with any refunded interest amounts as disclosed in the Cash (C) section of your Tax Report Detailed, not reconcile to the information you have received from your margin lender, you should contact your margin lender directly. Where your margin loan is jointly held across two or more Wrap accounts, please note that Macquarie equally splits the margin loan interest across those accounts. Macquarie recommends that you seek independent taxation advice in order to assess whether or not this split is correct and make the appropriate amendments where required. Government charges and administration fees Government charges and Administration fees have been classified as fully deductible. You may wish to seek independent taxation advice as to the deductibility of these fees and charges. 8
9. Specific security treatments Pooled development funds (PDFs) Macquarie has elected to treat any franked dividends from PDFs as assessable and has reported any such income on the Tax Report Summary and Tax Report Detailed. Any expenses incurred by you in relation to these dividends may be deductible. Instalment warrants The Tax Report Detailed reports all income derived from the underlying asset associated with an instalment warrant in the respective Managed fund and Listed trust (T) section or the Listed securities (S) section. Capital gains and losses on the disposal of an instalment warrant are also reported in the Disposal of Capital Items (R) section. The Tax Report Summary reports such income in the Dividends and/or Trust Distribution sections as relevant, while any capital gains and losses on disposal are shown as Capital gains from disposal of assets section. The Tax Report Summary and Tax Report Detailed do not report: the borrowing costs (deductible or non-deductible) associated with an instalment warrant any deductible interest or refunded interest amounts on instalment warrants, or any carry forward balances relating to your instalment warrant holding from prior income years. An Issuer Instalment Warrant Tax Report Summary and Issuer Instalment Warrant Tax Report Detailed will detail information on your instalment warrant holdings as provided by your instalment warrant issuer. The Issuer Instalment Warrant Tax Report Summary provides you with a summary of: prepaid interest amounts interest refund amounts borrowing fee amounts as provided by your instalment warrant issuers. The amounts reported are separated into amounts for individuals or for self managed superannuation funds as determined by the issuer. Where you are not an individual or self managed superannuation fund, the issuer has chosen which taxpayer type to report your amounts under. We recommend you obtain independent taxation advice to determine how these amounts should be treated for your own personal circumstances. The Issuer Instalment Warrant Tax Report Detailed provides detailed information for each instalment warrant held in your account as provided by your issuer. The expense recognition rules associated with instalment warrants may differ between warrant issuers and may depend upon the type of taxpayer you are. You and your accountant should read the footnotes to the reports and undertake independent calculations to determine which amounts (if any) of the expenses reported are deductible in the current financial year. Stapled securities Some listed securities are stapled to other listed securities, listed trusts, managed investments, property trusts or a combination thereof. Income from these may include both dividends and trust distributions in their returns to investors. For some securities we have split this income and reported separately under each category. For all other stapled securities we have reported the income on a consolidated basis under the managed fund and listed income section. The timing of this income has been reported according to the rules for each category as outlined above. Where you have disposed of a stapled security throughout the year, Macquarie has reported a separate capital gain and/ or capital loss in respect of the underlying assets for some stapled securities. For a list of these staples, please refer to the Macquarie Wrap website. For all other stapled securities, Macquarie has reported a consolidated position in respect of the disposal. Controlled foreign companies (CFCs) The Tax Report Summary and Tax Report Detailed separately report any unrealised income that may accrue CFC income as reported by the product issuer. If you have an investment in a CFC, Macquarie recommends that you seek independent taxation advice in relation to any specific CFC taxation treatment. Conduit foreign income Any conduit foreign income that you have received from assets held in your account has been disclosed as Australian unfranked dividend income in the Tax Report Summary. It is separately disclosed in the Tax Report Detailed. Class Action proceeds Where a Class Action is instigated, eligible shareholders may receive additional capital proceeds upon successful completion of the class action. Macquarie reports these amounts as additional capital gains in the year they are received. Macquarie recommends that you seek independent taxation advice to determine whether this treatment is most appropriate for your individual circumstances. 9
Tax policies and general assumptions 10. No Tax File Number (TFN), Exemption or Australian Business Number (ABN) provided If you have chosen not to provide your TFN, ABN or have not notified Macquarie of an exemption by the record date of the distribution or dividend, TFN withholding tax may be withheld by share registries for investments in ASX listed securities, and by Macquarie for managed investments. If an amount has been withheld, it is disclosed on both the Tax Report Summary and Tax Report Detailed. This amount may be claimed as a credit in your income tax return. 11. Non-resident withholding tax If you are a non-resident, withholding tax may be deducted on certain income received from listed equities and unlisted managed funds. For listed equities, the share registry will deduct any nonresident withholding tax and remit these amounts to the ATO. For unlisted managed funds, Macquarie deducts a flat 15% withholding tax against the gross cash distribution received throughout the year and remits this to the ATO. After year end, Macquarie performs a reconciliation against all assets held in your account. Macquarie does this once all income components of all assets held in your account are known. The reconciliation is performed for all open accounts comparing the amount that was deducted and the amount that should have been deducted. In performing the reconciliation, the correct rates of withholding tax take into account Double Tax Agreement (DTA) rates for interest and unfranked distributions and 7.5% for TARP capital gains and Australian other income where you live in a country with which Australia has an effective Exchange of Information Agreement. The rate will be 30% where you live in a country where no such agreement has been negotiated. Where too much tax has been deducted throughout the year, a credit is made to your cash hub. Conversely, where not enough tax has been deducted, a debit equal to the amount of the tax shortfall is made from your cash hub. Once this reconciliation is finalised, you have no further withholding obligations in respect of assets held in your account. 12. Dual listed shares withholding tax For listed securities which derive income in the USA, the Inland Revenue Service (IRS) require certain documentation from the ultimate investor to ensure that the appropriate level of withholding tax is deducted. In late 2010, applicable share registries have changed their approach and will no longer allow Macquarie to complete the required documentation on behalf of our investors. Where clients do not complete the required form and they derive income from unpacted securities, US withholding tax will be deducted from the payment. The rate applicable to such income is generally 30% unless a DTA is in force. Where such a tax has been deducted from any income, it will be referenced on your Tax Report next to the security name as W8 Ben Tax. We recommend clients seek independent taxation advice as to how to claim any amounts back and for assistance in completing the required documentation. 10
Deloitte Touche Tohmatsu Ltd ACN 092 223 240 Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1220 Australia The Directors Macquarie Investment Management Limited 1 Shelley St Sydney NSW 2000 DX: 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9255 8512 www.deloitte.com.au 24 May 2011 Dear Directors Independent Taxation Review: Macquarie Investment Manager Macquarie Investment Consolidator Tax Guide For the year ended 30 June 2011 We have reviewed the above Tax Guide ( the Tax Guide ) for Macquarie Investment Management Limited ( MIML ) for the year ended 30 June 2011. We have conducted an independent taxation review to determine whether, in our opinion, the Tax Guide contains any material misstatements or omissions in relation to taxation matters. This opinion has been prepared for MIML to be satisfied that it has obtained reasonable assurance in relation to the integrity of the Tax Guide having regard to its overall responsibilities and subject to the comments noted below. No responsibility will be accepted for any reliance on the opinion to any other person, or for any purpose other than which it was prepared. Scope of Review Our review of the Tax Guide has been limited to determining that based on the information that has been made available to us, we are not aware of any material statement that is false or misleading with respect to the technical principles as advised by MIML and referred to in the Tax Guide or any material omissions from the Tax Guide. The scope of our review did not extend to a review or testing of the systems, nor a review of the technical principles beyond those disclosed in the Tax Guide. Our review is based on the taxation laws, rulings and administrative practice of the Australian Taxation Office as at the date of this opinion. Statement Based on the review procedures outlined above, we are not aware of any issues that would cause us to believe that the contents of the Tax Guide for the year ended 30 June 2011 contains a material misstatement or omission. Yours sincerely, Adele Watson Director, Deloitte Touche Tohmatsu Ltd Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited 11
How to contact Macquarie Macquarie Wrap PO Box N498 Grosvenor Place NSW 1220 macquarie.com.au/clientview macquarie.com.au/wraptax BKL0243 06/11