CGT Articles

CGT Event K3

CGT Event K3

 Contents What is CGT event K3?   The basic tax rule for assets passing to a beneficiary of a deceased estate  What time does the event occur?   How to calculate the capital gain or loss?   Who does...

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CGT Event A1

CGT Event A1

Contents What is CGT event A1?   The time of CGT event A1  How to calculate the capital gain or capital loss?   Examples of CGT event A1  Examples where CGT event A1 does not occur   Which entity...

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CGT Event D1 and C2

CGT Event D1 and C2

Contents CGT Event D1 What causes CGT event D1 to be triggered?   At what time does the CGT event happen?   How to calculate the capital gain under the CGT event?   Instances where the CGT event...

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Forex Tax

Forex Tax

Contents Foreign Exchange Gains and Losses Division 775 of the ITAA 1997   FRE 1 – FRE 8 Alterations to above rules  Subdivision 960-C and 960-D of the ITAA 1997   Foreign Exchange Gains and Losses ...

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CGT Event E4

CGT Event E4

Contents What is CGT Event E4?   What Time Does the CGT Occur?   How is the Capital Gain Calculated   Discounting the Capital Gain Made Under CGT Event E4  Common Inclusions in the Non Assessable...

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Scrip for Scrip Rollover

Scrip for Scrip Rollover

Contents Eligibility Significant stakeholders Common stakeholders Impact of rollover on shareholders (original interest holders). Impact of rollover on acquirer The scrip for scrip rollover is...

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Small Business Entity

Small Business Entity

Contents Satisfying the $10 million aggregated turnover test Meaning of aggregated turnover Meaning of annual turnover Meaning of connected with an entity Meaning of affiliate An entity is a small...

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Share Buyback Tax

Share Buyback Tax

What is a share buyback? A share buyback involves a company purchasing its own shares from shareholders. The company is thereafter required to cancel those purchased shares. A share buyback is not...

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Small Business Entity

Contents Satisfying the $10 million aggregated turnover test Meaning of aggregated turnover Meaning of annual turnover Meaning of connected with an entity Meaning of affiliate An entity is a small business entity if it: carries on a business, and satisfies the $10...

Share Buyback Tax

What is a share buyback? A share buyback involves a company purchasing its own shares from shareholders. The company is thereafter required to cancel those purchased shares. A share buyback is not the same as the redemption of shares whereby the company redeems shares...

Tax on Options

Contents What is an option? How does an option work? Tax implications of options Renewing an option Disposal or lapse of option What is an option?An option is a right to acquire an asset from the grantor (call option) or dispose of an asset to the grantor (put option)...

Taxation of Special Lease Payments

Contents Surrender of lease payments Lease incentives Lease variations Lease premiums Long-term lease CGT discount It is common for a lessor (landlord) or lessee (tenant) to make special payments to the other in respect of lease arrangements. Examples of these types...

Small Business Restructure Rollover

It is very common for a small business to restructure to facilitate growth or adapt to commercial needs. By ‘restructure’ we refer to the process of changing the legal structure used to operate a business. Legal structures include the following: Sole Trader...

Buy Sell Agreement – CGT Implications

Contents Setting the scene CGT event D2 – grant of an option? Options “enlivened” Market value Insurance Owners of a business (including family businesses) can plan for the proper succession of their business on the death or disablement of an owner or controller by...

Property Development – CGT or Income Tax?

Contents Why the distinction matters Three possibilities Mere realisation Examples of subdivisions/developments on revenue account Examples of subdivisions/developments on capital account It’s not uncommon for landowners of decent sized blocks to release their land’s...

CGT Events

Contents What is a CGT event? Sale or disposal of asset Loss, theft or destruction of asset All CGT events What is a CGT event?When you sell an asset that is subject to capital gains tax (CGT), it is called a CGT event. This is the point at which you make a capital...

Sale of Business Assets – Tax Treatment

Contents Depreciable assets Pre-CGT assets Post-CGT land and buildings Trading stock Goodwill Restraint of trade agreements Work in progress Leased premises Employee entitlements Clawback clauses Debtors Division 43 clawback When selling/buying the assets of a...