CGT amendments: Unnecessary complications for small business
Source: Taxation In Australia Journal Article
Published Date: 1 Jul 2018
Amendments to the CGT small business concessions were introduced to parliament in the Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 on 28 March 2018, and were passed by the House of Representatives on 10 May 2018. The Bill covers a number of integrity issues not identified in the explanatory memorandum, many of which arise from applying the $2m turnover test on a disposal of shares.
A secondary integrity issue is taxpayers with an ownership interest of less than 40% in an entity that exceeds the thresholds " $2m turnover or $6m in net assets. This article identifies two areas in which the CGT small business concessions apply adversely to taxpayers and are contrary to the policy behind the legislation. This article also raises the concern that these amendments are unnecessarily complicated for provisions that are to be applied by small business, and could be simplified by using two small amendments.
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Details
- Published By: Domenic Festa CTA
- Published On:1 Jul 2018
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