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 1..................................................................................................................2
Issue:......................................................................................................................................2
Rule:.......................................................................................................................................2
Application:............................................................................................................................3
Conclusion:............................................................................................................................4
References:.................................................................................................................................5

TAXATION LAW2
Answer to question 1
Issue:
Whether the taxpayer is permitted to obtain the exemption from the capital gains tax
and rollovers which is accessible under small business CGT concessions?
Rule:
As stated by the ATO, exemptions relating to capital gains tax and rollovers are available
to the taxpayers. As per the “section 152-35 and 152-40” a CGT asset which satisfies the
eligibility test of active asset is allowed to obtain the concessions (Sadiq 2019). As per
section “section 152-10 & 152-15” CGT exemption is available to any business taxpayers
that results in net amount of CGT asset of not higher than $6 million. The types of small
business concessions includes;
a. 15 year exemption as per subdivision 152-B
b. Reduction of 50% in CGT under subdivision 152-C
c. Retirement exemption from capital gains under subdivision 152-D
d. Rollover relief from the asset replacement under the subdivision 152-E
While disposing the active asset the taxpayers can avail the above stated concessions and
any criteria that is given below
a. The small business of the taxpayer has the yearly turnover of not less than $2 million
b. The asset was completely used and connect to the business
c. The net asset value should not be more than $6 million
As stated by ATO, a taxpayer while selling the depreciating asset, they should consider
making balancing adjustment in order to take into account the differences among the adjusted