Business sale contracts: CGT and timing issues
Source: Taxation In Australia Journal Article
Published Date: 1 Apr 2018
Selling a business is a complex process where the to and fro between the vendor and purchaser can give rise to equally complex matters of timing and taxation. Identifying the correct time of the capital gain in relation to the sale of business can lead to significant tax considerations. Determining the right time of the capital gain, however, is not always a simple matter. The difficulty arises from complex business sale processes due to the presence of a heads of agreement, conditional clauses in the business sale contract, and where variations to the executed business sale contract have occurred. This article provides guidance on the potential CGT implications of entering a heads of agreement in respect of a business sale, the existence of conditional clauses in a business sale contract, and the occurrence of any variation to an executed business sale contract.
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Details
- Published By: Dean Crossingham
- Published On:1 Apr 2018
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