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Published on 08 Nov 12
by NATIONAL DIVISION, THE TAX INSTITUTE
Intellectual property (IP) and goodwill are the life blood of a modern growing enterprise. Think of the business names, logos, and trademarks which are avidly protected by international corporations because they are the back bone of their enterprise value. It is easy to confuse the value of IP and goodwill when a business is sold. This paper identifies the essence of these assets and the taxation consequences which follow when dealing with them.
This paper covers:
identifying goodwill and distinguishing it from IP
the source of goodwill in intangible assets
structures for holding IP
interplay with R&D concessions
Capital gains tax issues: determining the appropriate cost base, termination value and the interaction with Div 40
goodwill licensing and franchisees’ goodwill (Just Jeans issues)
creation of IP outside of Australia (original copyright)
TR 2008/7 on royalty withholding tax and assignment of copyright.
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