Published on 21 Sep 10
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
Following the Government's announcement in the Budget that it will amend the law to deal with the CGT treatment of Earnout arrangements, the Assistant Treasurer released a Treasury consultation paper which sets out the proposed changes and seeks feedback on these proposed measures. This presentation covers:
- what the Government proposes in its consultation paper
- when will the ‘look through' approach apply, and when will it not apply?
- what is a ‘standard earnout' arrangement and a ‘reverse earnout' arrangement, and how will they be treated?
- how to deal with the retrospectivity of proposed changes
- interaction between the proposed changes and the CGT discount, the CGT small business concessions, and consolidations.
Current at 16 November 2009