The Commissioner has appealed to the Federal Court against the decision in Re Miley and FCT [2016] AATA 73. In that case, the AAT ruled that the “market value” of a parcel of shares that a taxpayer sold in a private company in an arm’s length transaction (together with the other 2 shareholders’ shares in the company) was not his proportion of the sale price received from the sale of all the shares, but a discounted amount to cater for the fact that the market value of his shares alone as a “non-controlling” shareholder was a lesser amount. As a result, the taxpayer passed the $6m “maximum net asset value test” for the purposes of qualifying for the CGT small business concessions.

[LTN 53, 18/3/16] [See article in the February Tax Month]