CGT Articles

What is CGT event C1? CGT event C1 involves a situation where a taxpayer owns a CGT which becomes lost or destroyed. The rules governing CGT event C1 are contained in section 104-20 of the Income Tax Assessment Act 1997 (Cth) (‘ITAA’). At what time does CGT event C1...

Goodwill is commonly known as the attractive force of a business that brings in its customers. The exact definition of goodwill is different under accounting principles compared with general law principles. Specifically, for accounting purposes, the definition of...

CGT events J2, J5 and J6 are invoked in situations where a taxpayer utilises the small business CGT roll-over concession and a certain specific circumstance occurs concerning the taxpayer decision-making regarding the acquisition and use of a replacement asset. The...

What is CGT Event G3? CGT event G3 is relevant where an appointed liquidator or administrator makes a declaration that the shareholders of a company, or shareholders of a relevant class of shares, have no likelihood of receiving any further distribution in relation to...

A taxpayer is subject to capital gains tax where a CGT event happens to a CGT asset they own.   When it comes to relationship breakdowns, one would expect a number of potential taxing point under the CGT regime as the assets held by the persons in the relationship...

What is CGT event K4?   CGT event K4 addresses a situation where a taxpayer that holds a CGT asset on capital account starts to instead hold that asset as trading stock. This is most common in a property development context where a taxpayer that owns property for...

What is CGT event I1?     CGT event I1 addresses a situation where an individual or company owns CGT assets and ceases being an Australian resident for taxation purposes.   The rules addressing the operation of CGT event I1 are contained in section 104-160 and section...

What is CGT event G1?   CGT event G1 addresses a situation where a company makes certain payments to a shareholder.   Specifically, the requirements are that:   The company makes a payment to a shareholder in respect of share owned; and   The payment is not in...

What is CGT event K3?   CGT event K3 addresses a situation where a taxpayer becomes deceased and a CGT asset that taxpayer owned passes to a beneficiary of the deceased estate, whereby the beneficiary is either:   An exempt entity, or   The trustee of a complying...

What is CGT event A1?   CGT event A1 addresses a situation where a taxpayer disposes of a CGT asset.   A taxpayer disposes of a CGT asset where there is a change of ownership over the CGT asset.    There will generally not be a disposal where the taxpayer ceases to be...