CGT small business concessions are one of the key areas of a tax practitioner's workload. This course contains practical case studies designed to improve your expertise in this complex area of tax.
This course includes detailed, complex issues relating to CGT small business concessions explained in practical case studies, and frequent tax tips, tax traps and warnings accompanying learning points throughout the course.
Overview of basic conditions for relief
Maximum net asset value test, small business entity test and active assets
CGT concession stakeholder test, 15 year full CGT exemption and 50% CGT active asset reduction
CGT retirement exemption, CGT small business rollover, interaction of concessions and planning issues
This course consists of one online course and one online assessment.
Understand the scope and purpose of the small business CGT concessions including all recent material amendments and proposed amendments
Recognise all the basic conditions which must be met in order to access any of the concessions and how they interact with each other
Apply the small business entity test including the calculation of the $2 million aggregated turnover test and the need to include the annual turnovers of any affiliate or entity connected with the taxpayer
Apply the $6 million maximum net asset value test including determining the market value of all CGT assets and offsetting any liabilities and provisions which should be included in that calculation, including the net value of CGT assets of any affiliate or entity connected with the taxpayer
Identify an entity which would be regarded as an ‘affiliate’ which is effectively controlled by a taxpayer or which is a deemed affiliate being the taxpayer’s spouse or child under 18 (or an entity that they control) in certain circumstances
Identify an entity which is connected with a taxpayer because it is a controlled entity including the operation of the different control tests that apply to a company, partnership, discretionary trust and non-discretionary trust
Determine when an asset will be regarded as an active asset including the additional conditions that shares and trust interests must satisfy in order to be regarded as an active asset
Understand the additional basic conditions that must be met where a capital gain relates to a CGT asset which is a share in a company or an interest in a trust including the definition of the terms ‘CGT concession stakeholder’, ‘significant individual’ and ‘small business participation percentage’
Determine when the 15-year exemption can be applied to fully disregard a capital gain including understanding all eligibility criteria, and the mechanics for distributing any exempt amount by a company or trust to a CGT concession stakeholder
Apply the 50% active asset reduction and understand its consequences including its interaction with the CGT Discount, the retirement exemption and the small business rollover, and when the benefit of the concession may be clawed back when the sheltered gain is later distributed by a company or a non-discretionary trust
Determine when an individual, company or trust may apply the CGT retirement exemption and understand how the exemption can be effectively leveraged, and how an exempt amount can be distributed by a company or trust to a CGT concession stakeholder
Identify the circumstances in which a gain can be deferred under the small business rollover and how that gain can be wholly or partly reinstated on the occurrence of CGT events J2, J5 and J6
Tax professionals working in Public Practice and SME entities with responsibilities requiring detailed knowledge of the provisions of CGT.
This course is based on the Australian taxation system.