Published on 12 Sep 03
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
Companies are generally regarded as inappropriate vehicles for holding appreciating assets.
This seminar paper explores income tax and CGT issues arising from sale of a business and the voluntary liquidation of a private company and considers a number of practical issues including:
- the tax impact on pre and post CGT shareholdings
- what changes matter for a pre or post CGT business
- dividend distribution issues for interim and final distributions
- how the distribution affects pre CGT and tax-free amounts
- franking account issues under the new rules
- the operation of CGT concessions at the corporate level including the small business concessions
- eligibility at shareholder level for the 50% CGT discount
- treatment of the capital proceeds for the cancellation of shares, including the associated dividend issues.
Graeme Cooper, FTI, is Professor of Taxation Law at The University of Sydney and a consultant to Greenwoods & Herbert Smith Freehills. He is a former Chair of the New South Wales State Council of The Tax Institute and former member of the National Council. He has worked as a consultant to the ATO, Treasury, Board of Taxation, United Nations, OECD, World Bank, the International Monetary Fund and several foreign governments. He was admitted to legal practice in New South Wales and Victoria, and practised commercial law and tax in Sydney before entering teaching. He has taught in law schools in Australia, Europe and the United States, and holds degrees from the University of Sydney, University of Illinois and Columbia University, New York.
- Current at
06 June 2019