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CGT: consideration and cost base presentation


Calculation of consideration and cost base for CGT purposes can be made complicated by post completion and other events. The impact of different events is examined in this presentation including:

  • is the cost base fixed by the requirement to pay under the contract or can it change? For example, cost base adjustments for post-completion events
  • how is cost base affected by set-off or forgiveness of liability to pay?
  • CGT treatment of contingent and unascertainable amounts (eg earn-outs) for both consideration and cost base purposes
  • is consideration under a contract ever fixed? What if there is known exposure to a warranty claim when the contract is signed?
  • are legal costs related to opposing an indemnity claim part of the seller’s cost base?

Author profile

Melanie Baker CTA
Melanie is a barrister who specialises in tax and administrative law. Before joining the Victorian Bar in 2010, Melanie was a Senior Associate in the Tax group of Allens Arthur Robinson. As a barrister, Melanie regularly advises, and appears on behalf of, taxpayers and the Commissioner of Taxation. Melanie is also a Senior Fellow of the University of Melbourne where she co-lectures the post-graduate law subject, ‘Tax Litigation’. - Current at 08 November 2019
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This was presented at 46th Victorian State Convention: Feast of Delicacies .

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