Published on 06 Oct 06
by VICTORIAN DIVISION, THE TAX INSTITUTE
“The Lord giveth and the Lord taketh away”. He’s not the only one. The welcome reform of the provisions for deductibility of expenditure otherwise unrecognised in the tax system (so-called “black hole expenditure”) was accompanied by an expansion of the rules defining amounts included in the CGT cost base, thus making those amounts non-deductible under the black hole rules. This paper discusses that feature of the reform, including:
- identifying “capital expenditure”, especially in start up contexts
- the meaning of “in relation to” the relevant “business”, for example, in a business acquisition context
- what expenditure on someone else’s business will be deductible.
Tim is a Special Counsel at Greenwoods & Herbert Smith Freehills Pty Limited in Melbourne. Tim is a legal practitioner who practices primarily in the area of income tax and capital gains tax, generally for “large business and international” type clients, mainly in financing, major projects and M&A. He is a former State Chairman and current National Councillor of The Tax Institute, and is immediate past President of the Institute. He has published frequently in professional journals and spoken at professional organisation conferences and seminars and guest lectures in the University of Melbourne’s Masters of Laws program.
- Current at
19 June 2020