Login
iscover
Accounting partners assigning or otherwise dealing in rights to the future income of a partnership will no longer be able to access the small business capital gains tax concessions as of budget night.
Newsletter
Small business CGT concessions shut in Everett assignments
09 May 2018
•
9 minute read
In a tax integrity measure announced in the budget papers, partners who undertake Everett assignments will no longer be able to access small business CGT concessions from 7:30pm on 8 May 2018.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
According to budget papers, “some taxpayers, including large partnerships, are able to inappropriately access these concessions in relation to their assignment of a right to the future income of a partnership to an entity, without giving that entity any role in the partnership”.
Speaking to Accountants Daily, CPA Australia head of policy, Paul Drum, said the tax integrity measure brings perspective to an issue that has been under the spotlight in recent times.
“I think the budget has shed some light on the primary concern of the ATO and the government regarding assigning of rights to future income and that is the misuse of the interaction of assigning future rights and CGT,” said Mr Drum.
“When Everett’s case was decided, CGT wasn't even invented - it was decided some years before CGT was even introduced into Australia so there has always been concern that there was a disconnect, that they didn't mesh the way parliament would have intended if Parliament had actually contemplated it.”
There will be no changes to the small business CGT concessions which will continue to be available to eligible small businesses with an aggregated annual turnover of less than $2 million or net assets of less than $6 million.
You are not authorised to post comments.
Comments will undergo moderation before they get published.