Published on 03 Mar 10
by NATIONAL DIVISION, THE TAX INSTITUTE
Tax is levied on capital proceeds from CGT events as defined by tax law; but the when, which and what of the CGT event is often a matter of contract law rather than tax law. Contract law determines the time and identity of the event, and the value of the capital proceeds. This paper considers:
- using contracts to determine timing of disposals
- using earn-out contracts to defer receipt of capital proceeds
- using contracts to choose the relevant CGT event
- amendments, novations and assignments of contracts.
Cameron Rider is a Special Counsel at Greenwoods & Herbert Smith Freehills practising in corporate and international tax. He was a professor, and still teaches, at the Law School at the University of Melbourne.
- Current at
14 December 2017