Capital Gains Tax – Know when to hold it, know when to run

By Amanda Carruthers

The High Court of Australia’s decision in Commissioner of Taxation v Australian Building Systems Pty Ltd (in liq) has determined that retention authorisation and obligation relating to Capital Gains Tax arises only upon assessment (or deemed assessment) in respect of the income, profit or gains, and not merely upon crystallisation of the tax event. Accordingly, insolvency practitioners such as liquidators may no longer need to retain funds from the proceeds from an asset sale to meet any CGT liability which could become payable, prior to formal assessment.

Read the full article here: Capital gains tax