Published on 01 Oct 99
by THE TAX INSTITUTE
Joint Submission by the Taxation Institute of Australia, the Institute of Chartered Accountants in Australia, the Australian Society of CPAs, and the Australian Taxpayers Association on TD1999/D89Income tax capital gains: is the Commonwealth or a State or Territory an entity for thepurposes of CGT even D1 (about creating contractual or other rights in you) in sections 104-35and 109-5 of the Income Tax Assessment Act 1997? RESPONSE: Our reading of the legislation suggests that the ATO have answered correctly. ie that 960-100ITAA 97 will define an entity to include a Commonwealth, State or Territory Government. However, the application of the CGT provisions as described in the example provided does raise some questions.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
AUSTRALIAN TAXPAYERS ASSOCIATION
AUSTRALIAN SOCIETY OF CERTIFIED PRACTISING ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA