Draft Taxation Determination

TD 1999/D69

Income tax: capital gains: can property or a right that does not have a 'market value' be a CGT asset?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 2000/33.

FOI status:

Not previously released in draft form


Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office.

1. No. Know-how is not a CGT asset because it is not a form of property nor a legal or equitable right.

2. Know-how is knowledge or information rather than a CGT asset.

Note 1

3. A right in respect of know-how, such as a contractual right to require the disclosure or non-disclosure of know how, is a CGT asset under subsection 108-5(1) of the Income Tax Assessment Act 1997. Similarly, a licence to use know-how is a CGT asset.

Note 2

4. There may be implications under the revenue provisions of the income tax law for receipts for supplying or imparting knowledge or information: see section 6-5.

Your comments

5. We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Comments by Date: 10 September 1999
Contact officer details have been removed following publication of the final ruling.

Commissioner of Taxation
11 August 1999


ATO references:
NO 99/10671-9
BO CGT asset summit 1999

ISSN 1038 - 8982

Related Rulings/Determinations:

IT 2660
TR 93/12
TR 98/3

Subject References:
CGT asset
know how

Legislative References:
ITAA 1997 6-5
ITAA 1997 108-5(1)