This Draft TD, issued Wed 19.9.2012, concerns a receiver who disposes of a CGT asset as the agent for a debtor and any resultant obligations under s 254 of the ITAA 1936. In particular, the Draft TD deals with the question of whether the receiver has an obligation under s 254 to retain from the sale, proceeds sufficient money to pay tax which is, or will become, due as a result of disposing of the asset.
According to the Draft TD, the receiver would be required by subpara 254(1)(d) to retain from the sale proceeds that come to them in the capacity of agent sufficient money to pay tax which is or will become due as a result of disposing of the CGT asset. The Draft adds that the fact that an increase in the value of the asset may have, to some extent, accrued before the appointment of the receiver, does not affect the amount of the gain that is the subject of subpara 254(1)(a) nor the tax liability that is the subject of subpara 254(1)(d).
DATE OF EFFECT: When the final Determination is issued, it is proposed to apply to arrangements begun to be carried out from the date of issue.
COMMENTS are due by 19 October 2012. ATO Contact: Julie Czekierda – Tel: (07) 3213 6167; Fax: (07) 3149 5731; Email: julie.czekierda@ato.gov.au.
[LTN 182, 19/9]