Published on 17 May 12
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
This paper covers:
- what is an earnout?
- the key issue in relation to the tax treatment of earnouts - should an earn-out right be treated as property for tax purposes?
- issues with the Commissioner not accepting look-through approach under the existing legislation
- summary of the development of the taxation treatment of earnouts
- submissions in relation to the proposals paper.
Current at 13 July 2014