Goodwill is a single CGT asset. As a business grows it may undertake a wider range of activities. This article explores whether goodwill from the expanded business is a separate and distinct CGT asset, or simply an expansion of the existing business goodwill?
The maximum net asset value test is designed as a snapshot taken just before the CGT event. A previously rented holiday home shouldn’t affect its exclusion status if it is being used solely for the owner’s personal use leading up to the relevant CGT event. However, the ATO holds a different view. This article examines whether the ATO’s stance warrants a reassessment.
There is a misconception that all unit trusts are fixed trusts. Perhaps it is because a beneficiary’s income and capital entitlements are based on their unitholdings rather than being dependent on the trustee discretion to appoint income/capital. The tax ramifications for misclassifying a unit trust as ‘fixed’ could in certain circumstances be detrimental. This article seeks to highlight potential implications for misclassification.
When an individual moves overseas there may be flow on capital gains tax consequences. A change in tax residency status may result in the individual taxpayer being denied any main residence exemption if they were to sell their former Australian residence while being a foreign resident. In this article, we highlight some important considerations.
CGT event E4 can also be triggered by tax timing adjustments. In certain circumstances this could lead to double taxation for unitholders. This article explores an example situation where double taxation could arise.
Attention to detail is paramount when giving tax advice. This was most relevant in a recent case regarding the use of similar terms in the small business CGT concessions. The question was about access to the small business 15-year exemption.
Most practitioners agree that the rules for access to the SBCGT concessions are inherently complex. This article seeks to explore some of these complexities, specifically satisfying the significant individual requirement and the importance of timing where passively held assets are used in a business of a connected entity.
The reopening of borders has resulted in an increase in people choosing to move overseas. It is, therefore, timely to revisit some of the income tax implications of such a move. In this article, we provide practical examples of doing so.
The NSW government has recently announced the removal of surcharge provisions for foreign persons from New Zealand, Finland, Germany and South Africa. What does it mean and who is affected?
The use of the small business restructure rollover may have impacts such as resetting the clock in respect of the 15-year exemption, or making the active asset test much harder to pass. In this article we highlight some issues to watch out for.
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