22 Jun 10 Taxpayer company satisfies the Div 152 maximum net asset value test
The AAT has held that a corporate taxapayer satisfied the maximum net asset value test in Div 152 ITAA and was thus entitled to the benefit of the small business CGT concessions in respect of the sale of a tavern in Queensland.
At issue was whether certain expenses associated with the sale of the tavern were "liabilities" of the taxpayer "just before the CGT event", and whether one of the directors of the taxpayer (the son of the other director, who was also a shareholder in the taxpayer and a shareholder in another company that owned shares in the taxpayer) was a “small business affiliate” of the taxpayer.
The AAT held that the expenses were liabilities "just before the CGT event" and that the son was not a “small business affiliate” of the taxpayer, with the result that the sum of the net CGT assets of the taxpayer and the entities connected with it just before the CGT event did not exceed $5m. The taxpayer's appeal against the Commissioner's objection decision was upheld, and the matter remitted to the Commissioner to allow the objection in full.
The Taxpayer and FCT  AATA 455 (AAT, Hack DP, 18 June 2010).