05 Dec 08 Submission on CGT concessions for small business Exposure DraftThe Taxation Institute has lodged a submission with Treasury regarding the Exposure Draft on the changes to the CGT concessions for small business announced in the 2008-09 Budget and released for public comment on 14 October 2008: see TAXVINE No 41 (7) (17 October 2008).
The Taxation Institute believes that the proposed changes, which operate to deem an entity to be a Small Business Entity (SBE) when it is not otherwise an SBE, is unnecessarily cumbersome and creates an unnecessary fiction (to add to the multitude of fictions already created by the Act). An alternative and simpler approach is suggested to merely add to the categories of entities prima facie eligible for the CGT small business concessions.
The Taxation Institute has also submitted that the deeming of a spouse to be an affiliate should be expressly limited to the situation where the business entity is not otherwise connected with or an affiliate of the asset owner.
For a copy of the submission, go here.