Taxation Law

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

1TAXATION LAW
Table of Contents
Answer to question 1:.................................................................................................................2
Issues:.....................................................................................................................................2
Rule:.......................................................................................................................................2
Applications:..........................................................................................................................3
Conclusion:............................................................................................................................3
References:.................................................................................................................................4

2TAXATION LAW
Answer to question 1:
Issues:
Is the taxpayer allowed to claim capital gains tax exemptions and rollovers that are
available under the small business CGT concessions?
Rule:
According to the Australian Taxation Office, together with the capital gains tax
exemption and rollovers that are available more widely, there are four types of concessions
which allows the taxpayer to ignore or defer some or full amount of the capital gains from the
active asset that is used in the small business. As defined under the “section 152-35 and 152-
40” a CGT assets that meets the active asset test is eligible for four concessions (Woellner et
al. 2016). Under “section 152-10 & 152-15” Capital gains tax is available to any business
taxpayer that has the net value of capital gains tax asset is not greater than $6 million
(Barkoczy 2016). The small business concession includes the following;
a. 15-year exemption under subdivision 152-B
b. 50% reduction in capital gains tax under subdivision 152-C
c. Retirement capital gains exemption under the subdivision 152-D
d. Roll-over relief asset replacement under the subdivision 152-E
The above stated concession are available to the taxpayers when they dispose the
active asset and any of below stated conditions are met;
a. The taxpayer small business has the aggregate yearly turnover of not less than $2
million
b. The asset was entirely used and connection to small business
c. The taxpayer has the net asset of not greater than $6 million