The ATO on Thur 9.8.2012, released an Interim Decision Impact Statement on the decision in FCT v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127. In that case, the Full Federal Court by majority confirmed that for the purpose of accessing the CGT small business concessions, a real estate agent commission incurred on the sale of a hotel business could be included as a “liability” for the purposes of the “maximum net asset value test”. The High Court subsequently refused the Commissioner special leave to appeal.
The ATO broadly said its view in Taxation Determination TD 2007/14 does not fully accord with the Full Court’s judgment. Therefore, it said it will review the TD in light of the Full Court’s decision.
[LTN 153, 9/8]