Division 152 paper

Published on 21 Jul 22

Where they apply, the small business tax concessions are generous. But determining eligibility is often complex; more so now than ever with recent changes to the rules meaning extra tests that need to be met in some cases. Claims are also attracting ATO attention with justified trust programs having revealed to the ATO that some ineligible businesses have mistakenly claimed, triggering this to become a current area of ATO review focus. Against that background, in this paper Michael addresses:

• CGT concession stakeholders
• Considerations that arise in respect of exiting stakeholders
• The use of the concession when restructuring follows a family split
• Other common traps encountered and what you can do to support claims and;
• Interaction with CGT rollovers – particularly under subdivision 126-A

Author profile

Michael Parker CTA

Michael is a Partner in the Taxation section of Hall & Wilcox Lawyers. His practice focuses on tax disputes, domestic income tax issues, including CGT and Div 7A, business sales, acquisitions and restructures and GST. Michael has extensive experience handling a broad range of taxpayer disputes, including disputes concerning the small business CGT concessions, having acted for the taxpayers in White v FCT [2009] FCA 880, White v FCT [2012] FCA 109 and Altnot v FCT [2013] AATA 140, among other cases. Michael regularly consults to the Board of Taxation and Treasury, including in respect of Div 7A, small business impediments and the small business CGT concessions. He is a regular presenter for The Tax Institute. - Current at 05 May 2022

More by Michael PARKER

• Division 7A Changes: Get Ready! paper - 21-March-2019
• Division 7A and winding up structures paper - 05-July-2016
• Division 7A and winding up structures - 01-December-2015
• Preparing for retirement & succession planning paper - 05-November-2015
• Division 7A and winding up structures paper - 08-October-2015
• Trustee resolutions - Including Section 100A paper - 28-May-2015
• Setting the scene paper - 16-April-2014
• A review of major tax developments in 2013 paper - 17-October-2013
• Small business CGT concessions paper - 31-October-2006
• Questions & Answers: Division 43 and section 262A (4AJA) notice requirements for capital allowances - 01-February-2006
• Q & A: Funding discretionary trust distributions; Deductibility of interest - 01-October-2005
• Q&A: What to do when the ATO and AFP come knocking - 01-July-2005
• Q&A: CGT - some issues arising in practice - 01-June-2005
• Q&A: Options - 01-May-2005
• Q&A: Co-operatives and Non-profits denied application of mutuality principle - 01-October-2004
• Q&A: Tricks and traps when settling disputes - 01-September-2004
• Q&A: Family Trust Elections - 01-August-2004
• Q&A: Taxation of Foreign Exchange Gains and Losses - The New Rules Part 2 - 01-March-2004
• Q&A: Taxation of Foreign Exchange Gains and Losses - The New Rules Part I - 01-February-2004
• Q&A: Value Shifting Basics - 01-December-2003
• Case Study: Winding Up a Business seminar paper - 15-November-2003
• Q&A: Value Shifting Basics - 01-November-2003
• Q&A - PSI, Part IVA & Mochkin's case - paper, rocks or scissors? - 01-June-2003
• Q&A - 01-May-2003
• Q&A - 01-April-2003
• Q & A - 01-March-2003
• General tax update - 18-October-2002
• Q and A: Demergers - 01-September-2002
• Q and A: The new franking rules - 01-August-2002
• Q & A: private company loans and Division 7A - 01-July-2002
• Q & A: Unit Trust Distributions - 01-April-2002
• Tax Q & A - 01-May-2001
• Tax Q&A - 01-April-2001
• Q & A: Non-Commercial losses: new tests - 01-November-2000
• Q&A: Scrip-for-scrip rollover - 01-October-2000
• Tax Q&A: imputation credits and dividend rebates - don't lose them on 1 July 2000 - 01-June-2000
• Tax Q&A: CGT concessions amending legislation - 01-April-2000
• Tax Q & A: Ralph Reforms: Capital gains tax amending legislation: trusts live! - 01-February-2000
• CGT changes following Ralph - 01-December-1999
• Tax Q & A: Capital gains tax: rollovers and buybacks - 01-June-1999

Click here to expand/collapse more articles by Michael PARKER.