Published on 09 Jun 06
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
An analysis of the capital gains tax and capital allowance and other income tax issues resulting from the disposal of farming assets.
The dust has settled from the clearing sale and you, as the Adviser, are left with the final contract documents.
Establishing the final position and crunching the numbers is generally a significant chore, however the problem invariably compounds when you drill down into the many complex taxation issues. This case study style paper will examine the capital gains tax, capital allowance and other income tax issues resulting from the disposal of farming assets.
Are the gains balancing adjustments, capital gains, or recoups of expenditure on items treated concessionally for primary producers? How are gains calculated and how do these different divisions interact?
John is a Chartered Accountant and Tax Partner with PKF in Melbourne. John has been providing taxation and business advice to clients ranging from large global corporations to smaller family-owned enterprises for over 15 years. John's experience gained with two of the 'big four' accounting firms, large global and national corporations and a small country firm of Chartered Accountants, includes the mining and energy industries, agribusiness, financial services, and manufacturing. John is recognised for his expertise in the mining and energy industries. He spent a number of years in Western Australia and Queensland working with and consulting to mining and energy companies. John is also recognised for his work with the agribusiness industry, where his practical experience in the industry prior to becoming a Chartered Accountant has proven invaluable in providing practical tax and business advice to his agribusiness clients. John has recently co-authored a series of articles looking at the evolution of the new uniform capital allowances provisions in the tax law.
Current at 10 April 2006 Current at 24 May 2006
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