Published on 17 Oct 13
by TASMANIAN DIVISION, THE TAX INSTITUTE
Increasingly, the ATO is successfully challenging taxpayers’ claims for the small business CGT concessions. Recent cases reveal common and not-so-common errors made by taxpayers. In particular, the ATO is focusing on the maximum net asset value (MNAV) test. This paper includes discussion on the areas under attack by the ATO and how advisers can prevent their clients from being caught out. It covers:
- $6 million MNAV test – where taxpayers are getting it wrong
- recent cases including Altnot and Bell – clarification or confusion?
- most common errors made when applying the retirement exemption
- getting the structuring and trust distributions right to qualify for the concessions
- questions to ask when inheriting a client.