The Tax Office has Tue 15.4.2014 issued a 2nd Addendum to Taxation Determination TD 2007/14 (CGT: small business concessions: what “liabilities” are included in the calculation of the “net value of the CGT assets” of an entity in the context of s 152-20(1) of the ITAA 1997?).
The Addendum, issued as TD 2007/14A2, updates the Determination for CGT events happening in the 2007-08 income year or later income years to update references to:
- the increase the maximum net asset value test threshold in s 152-15 of the ITAA 1997 from $5m to $6m;
- replace the term “small business CGT affiliate” with “affiliate” (in terms of its changed meaning and its new definition now contained in s 328-130 of the ITAA 1997), and
- the enactment of small business entity ($2 million turnover) test as an alternative to the maximum net asset value test as a means of qualifying for the small business CGT concessions.
The Addendum applies to CGT events happening in the 2007-08 income year or later income years.
[LTN 72, 15/4/14]