The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 140, Re Altnot Pty Ltd and FCT. In that case, the AAT confirmed a taxpayer company did not satisfy the maximum net asset value (MNAV) test for the purposes of qualifying for the CGT small business concessions. However, in coming to that decision, the AAT emphasised that s 152-15(a)(iii) of the ITAA 1997 does not take into account the net value of the CGT assets of an entity that is a small business affiliate of one of taxpayer’s company small business affiliates (of which there were none in this situation). It therefore held that the wife of the sole director and controller of the taxpayer company was not “connected with” the husband for the purposes of the MNAV test.
[LTN 71, 16/4/13]