Allowable deductions, cost base of CGT assets and the GAAR: a minefield for taxpayers and their advisers
MetadataShow full item record
Taxpayers and their advisers have, for decades, struggled to reconcile outgoings that can be considered as allowable deductions under s 8-1 of the Income Tax Assessment Act 1997 (Cth) (ITAA 97), with those outgoings which may be included in the cost base of a Capital Gains Tax (CGT) asset.1 In this article we briefly examine Hart’s case2 and the subsequent Taxation Determination TD 2005/33 issued by the Australian Tax Office (ATO). This Tax Determination sets out the Commissioner’s view regarding the inclusion (or non-inclusion) of non-capital costs of ownership of a CGT asset in its cost base where such outgoings had been previously denied deductibility under the general deduction provisions3 of the ITAA 97 by virtue of the general anti-avoidance rule (GAAR) under Pt IVA of the Income Tax Assessment Act 1936 (Cth) (ITAA 36).
Copyright © 2014 LexisNexis. This article is made available per the publisher's Content Sharing policy.
URIhttps://advance.lexis.com/api/permalink/ c81a2239-343c-4f7b-83fe-36ae9d94b6b8/? context=1201008&federationidp=SFHJ6R50981