Taxation Law

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

TAXATION LAW1
Table of Contents
Answer to question 4:.................................................................................................................2
Answer to question 5:.................................................................................................................5
References:.................................................................................................................................8

TAXATION LAW2
Answer to question 4:
Answer A:
As mentioned in “sec 104-110, ITAA 1997” a CGT event F1 is triggered when the
owner of land grants the options of extending the lease for a certain number of years in
exchange of premium1. The land owners here should understand that in case of CGT event F1
no CGT discount is allowed.
When the option of granting the land on lease was entered by John to David, CGT
event F1 triggered under “sec 104-110, ITAA 1997”. Hence, John is not permitted for any
CGT discount.
Answer B:
Issues:
Is the taxpayer entitled to CGT discount from the sale of shares?
Rule:
“Sec-108-5, ITAA 1997” considers shares in company as the CGT asset. A CGT
event A1 triggers under “sec104-10 (1)” when the asset is sold. A taxpayer is permitted to
CGT discount when the CGT asset is held for 12 months2. While the capital loss must be
offset against capital gains or can be carried forward to next year.
1 Evans, Chris, John Minas, and Youngdeok Lim. "Taxing personal capital gains in Australia:
An alternative way forward." Austl. Tax F. 30 (2015): 735.
2 Edmonds, Richard. "Resource Capital Fund IV LP: the issues on appeal?." Taxation in
Australia 53.1 (2018): 22.