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Expanding TARP to capture goodwill and mining information


From 14 May 2013, the meaning of “taxable Australian real property” (TARP) has been expanded to capture goodwill and mining information. This article discusses the challenges facing the government and foreign residents when dealing with this new measure. It points out that the new measure will cause Australia’s domestic laws to be out of step with our key double tax agreements in relation to the taxation of capital gains realised by foreign residents, and that this may interfere with the outcome sought to be achieved by the new measure.

It discusses the meaning of goodwill and suggests that the new measure may well expand the scope of our capital gains tax provisions to capture value attributable to non-TARP assets as well as TARP assets. It discusses how the courts have dealt with the separate identification of mining information as an asset, and how one might value that asset in the hypothetical transaction required by our CGT provisions.

Author profile

Martin Fry FTI
Martin has been a Partner in the Allens Tax Group for 20 years and in that time has been extensively involved in advising resource companies, infrastructure projects, banks and IP intensive businesses. In recent years he has focused on contentious cross border issues, both from a litigation perspective and in alternative dispute resolution. - Current at 30 November 2020
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