On 14 May 2013, the previous Government announced amendments to the foreign resident CGT Principal Asset Test, which would:
- value mining, quarrying or prospecting information and goodwill together with the mining rights to which they relate; and
- remove the ability to use transactions between members of the same consolidated group to create and duplicate assets.
On 4 November 2013, the Government announced that it would proceed with the announced amendments to the Principal Asset Test.
Treasury has now released exposure draft legislation for consultation.
Treasury noted the proposed amendments also include a change that has been made to the scope of the asset duplication measure. In particular, it said its scope is not restricted to entities that are members of the same consolidated group or MEC group.
Treasury also noted that the exposure draft explanatory memorandum notes the Government’s decision to defer proceeding with the valuation measure pending the outcome of ongoing litigation of the issue.
COMMENTS are due by 9 June 2014
[LTN 92, 15/5/14]