The High Court has refused the Commissioner special leave to appeal against the decision in Financial Synergy Holdings Pty Ltd v FCT [2016] FCAFC 31. The Full Federal Court had unanimously allowed the taxpayer’s appeal and held that for the purposes of determining the “allocable cost amount” (or cost base) of an asset that came to be owned by a consolidated group on consolidation (in circumstances where the asset was originally a pre-CGT asset that had been subject to a roll-over that preserved its pre-CGT status), the time for determining its market value cost base for these purposes was not its time of “deemed” acquisition under the roll-over (ie pre-CGT), but its date of “actual” acquisition by the group at “joining time”. This meant that its cost base for consolidation purposes was $30m and not some $1.5m.

[LTN 195, 10/10/16]