shopping_cart

Your shopping cart is empty

Forgive but don’t forget: CGT event C2 and related party loans

Member Price: $22.00
Non Member Price: $28.00

DisclaimerThis material is copyright. Apart from any fair dealing for the purposes of private study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

Published on 01 Sep 15 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

When loans between related parties are forgiven, particularly within family groups, it is important that the tax issues that may arise are not forgotten. Such issues may include determining if and when CGT event C2 happens under Subdiv 104-C of the Income Tax Assessment Act 1997 (Cth) (ITAA97), and considering the consequences of the personal-use asset provisions of Subdiv 108-C and the market value substitution rules in Subdiv 112-A and Div 116 ITAA97.

This article provides guidance on the tax issues that may arise when CGT event C2 happens to a related party loan as a consequence of forgiveness and a capital loss is intended to be claimed, or carried forward, by the lender.

Author profiles

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
Click here to expand/collapse more articles by Dean Crossingham.
Kaylene Hubbard ATI
Kaylene Hubbard, ATI, is a Tax Partner with KPMG Enterprise and is the Managing Partner of KPMG’s office in Greater Western Sydney. Kaylene’s experience spans over 20 years in working with corporates, including ASX listed entities, private owners, family groups and their businesses across a wide range of industries to grow, create and protect value. Her expertise includes developing appropriate business structures and funding arrangements, capital management, mergers and acquisitions, business restructures and assisting clients in their dealings with the Australian Taxation Office. Kaylene has a deep interest and experience in the not-for-profit and charity sector. Kaylene has worked extensively with not-for-profit entities seeking to change their corporate and tax structure, and in pursuing tax exempt status for entities. She has experience in seeking charity status for organisations, in seeking Deductible Gift Recipient status and in advising not-for-profit entities regarding their governance and compliance obligations. Kaylene is passionate about empowering the sector to grow, impact and adapt in a changing environment. - Current at 03 February 2023
Click here to expand/collapse more articles by Kaylene HUBBARD.

 

Copyright Statement