Capital Gains Tax (CGT) 2014

Earnouts & CGT: Fine-tuning the "look-through" approach

Source: The Tax Specialist Journal Article

Published Date: 1 Aug 2014


This article evaluates the long-awaited changes proposed for the CGT treatment of the problematic area of earnouts. Given that reform to the area is wanting, it is reassuring to learn that the proposed look-through treatment, being theoretically sound, is much welcomed by critics and commentators alike. Rather than viewing the proposal as unworkable or inappropriate per se, this article discusses ways to “fine-tune” the proposed measure and highlights areas requiring further consideration. This will ensure that the proposed measure, when it is eventually enacted, will interact well with existing CGT and general tax laws to guarantee an equitable, simple and consistent CGT treatment for standard earnout arrangements.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


  • Published By: Cindy Chan
  • Published On:1 Aug 2014

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Capital Gains Tax (CGT) 2014

Share this page