Tax and Superannuation Laws Amendment (2015 Measures No. 6) Act 2016 (10 of 2016)

Schedule 1   CGT treatment of earnout rights

Part 2   Preserving small business concessions

Income Tax Assessment Act 1997

15   After subsection 152-305(1A)

Insert:

(1B) For the purposes of (but without limiting) subsection (1A), you are treated as receiving the *capital proceeds in instalments if:

(a) the *CGT event happened because you *disposed of the *CGT asset; and

(b) the capital proceeds from the disposal are increased by one or more *financial benefits that you receive under a *look-through earnout right.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).