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Business sale contracts: CGT and timing issues
Published on 01 Apr 18 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Selling a business is a complex process where the to and fro between the vendor and purchaser can give rise to equally complex matters of timing and taxation. Identifying the correct time of the capital gain in relation to the sale of business can lead to significant tax considerations. Determining the right time of the capital gain, however, is not always a simple matter. The difficulty arises from complex business sale processes due to the presence of a heads of agreement, conditional clauses in the business sale contract, and where variations to the executed business sale contract have occurred. This article provides guidance on the potential CGT implications of entering a heads of agreement in respect of a business sale, the existence of conditional clauses in a business sale contract, and the occurrence of any variation to an executed business sale contract.
Author profile
Dean Crossingham CTA
Dean has over a decade of experience providing tax advisory and compliance solutions. He advises on all areas of tax concerning private enterprise and family groups. Dean's expert yet pragmatic approach provides comfort and clarity to CABEL Tax clients. Dean is a member of Chartered Accountants Australia and New Zealand, and he also holds a Master of Applied Taxation from the University of New South Wales. - Current at 06 January 2016
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.