31 Jan 1212 CGT maximum net asset value test was not passed
The AAT has held that the trustee of a family trust, which made a capital gain in excess of $6 million on the disposal of units in 2 unit trusts, was not entitled the benefit of the small business concessions in Division 152 of ITAA 1997, as it had not satisfied the maximum net asset value test.
The AAT held, amongst other things, that a debt incurred by the trust to distribute capital was not a liability that related to the trust's assets as required by s 152-20. The AAT further held that 2 accounts held with the Adelaide Bank, one of which was in credit and one of which was in debit, could not be offset against each other, and that the full amount of the credit balance could be taken into account in calculating the net value of the trust's CGT assets.
However, the AAT set aside a penalty for recklessness (50%) imposed by the Commissioner and replaced it with a penalty for failing to take reasonable care (25%).
Bell and FCT  AATA 45 (AAT, O'Loughlin SM, 30 January 2012).