Taxation: Small Business CGT Concessions

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION
Table of Contents
Answer to Part A:.......................................................................................................................2
Answer to scenario 1:.................................................................................................................2
Issue:..........................................................................................................................................2
Laws:..........................................................................................................................................2
Application:................................................................................................................................2
Conclusion:................................................................................................................................3
Answer to Scenario 2:................................................................................................................3
Issue:..........................................................................................................................................3
Laws:..........................................................................................................................................3
Application:................................................................................................................................3
Conclusion:................................................................................................................................4
Answer to scenario 3:.................................................................................................................4
Issue:..........................................................................................................................................4
Laws:..........................................................................................................................................4
Application:................................................................................................................................4
Conclusion:................................................................................................................................5
Part B: CGT Small Business Concessions.................................................................................6
Introduction:...............................................................................................................................6
Small business CGT concessions:..............................................................................................6
Policy objectives of Small Business CGT Concessions:...........................................................7

2TAXATION
Significance relating to Small Business CGT Concessions:......................................................8
Recent reformation:....................................................................................................................9
Recommended further amendments in Small Business CGT Concessions:............................11
Conclusion:..............................................................................................................................12
Reference List:.........................................................................................................................14

3TAXATION
Answer to Part A:
Answer to scenario 1:
Issue:
 Will Kate would be held as Australian resident while she was away from Australian
when she was in Fiji for three-year time period?
 Will her part time earnings from teachings would be included in assessable income?
Laws:
a. “Subsection 6 (1) of the ITAA 1936”
b. “FCT v Applegate (1979)”
c. “FCT v Jenkins (1982)”
d. “Section 6-5 of the ITAA 1997”
Application:
The situation of Kate defines that she was born in Australia and carried the profession
of teacher in Toowoomba, following the resignation from her employment she moved with
her husband in Fiji. “Subsection 6 (1) of the ITAA 1936” ascertains the domicile of a person
along with the intention of where a person chooses to make their home indeterminately
(Barkoczy 2014). As held in “FCT v Applegate (1979)” it is necessary to consider the intent
of an individual where he or she decides to make their home indeterminately.
The situation of Kate outlines that her permanent place of abode is outside Australian
with no intent of making her home out of Australia. The court in “FCT v Jenkins (1982)”
defined that to determine a person permanent place of abode the original length of stay out of
Australia (Brokelind 2014). Likewise, referring to the view of commissioner Kate has
maintained her bank account in Australia and derived interest and rental income. She