Small Business CGT Concessions – The Good, The Bad and The Ugly

Much like the 1966 Clint Eastwood film, small business CGT concessions can often be Good, Bad or just damn right Ugly.

For clients selling their businesses, the small business CGT concessions can reduce their tax significantly or, in some cases, eliminate it altogether. Recently enacted integrity measures and increased ATO review activity make these concessions an area where extreme caution should be exercised.

Have you wrapped your head around the latest legislation?

Hoping to shed some light on the complex changes to the small business CGT concessions, which came into legislation in September 2018, we interviewed experts Neil Brydges, CTA, Sladen Legal, Adrian Zuccarini, Australian Taxation Office and Matthew Meng, Victorian Bar.

Navigating the Wild West of Small Business CGTs can be a difficult task - “this is a highly technical area” says Matthew, “practitioners really need to track through the detailed requirements in every case”.

Matthew, a practising Barrister, specialising in Tax, acting for both Taxpayers and the Commissioner of Taxation, will discuss his experiences in litigation as well as evidentiary strategy for some of the most controversial matters in this area.

Having over 10 years of experience in Tax Dispute Resolution and Tax Advisory, Matthew has seen an increase in “landowners in the urban fringes of major cities seeking to apply these concessions when they sell out to developers”.

Principal Lawyer in Sladen Legal’s Tax Group, Neil Brydges says - “the ‘devil is in the detail’. The new rules for shares and units are extremely complex and meeting the requirements to access the concessions is more difficult than many realise.”

Neil, an Accredited Specialist in Taxation Law and Chair of the Tax & Revenue Law Committee with the Law Institute of Victoria hopes his presentation at the Melbourne and Geelong June Breakfast Clubs will provide delegates with “an increased understanding of applying these complex new rules in practice.”

To end the session, Adrian Zuccarini will highlight “how the concessions have been used and missed by taxpayers”. Adrian is a Law Interpretation Director at the Australian Taxation Office, with more than ten years’ experience at the ATO.

Eager for delegates to learn “what the ATO considers ‘misuse’ and some ideas regarding how they can best position their clients to face an ATO review”, Adrian explained “practitioners need to be careful when working through the provisions to ensure that they meet the specific tests, especially when dealing with indirectly held interests in CGT assets that have been disposed of.”

Adrian continued “practitioners need also be aware that the ATO examines arrangements where there is a risk that taxpayers have misused the concessions.”

Don’t miss hearing from the three amigos as they share the hidden tips and traps associated with small business CGT concessions at the upcoming June Breakfast Clubs.

Register today to ensure you have the right tools to harness any small business CGT concessions issue.


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