Tax - Cgt, Gst, Corporate Tax

Candidate Number: xxxxx [pic] Applied Tax Assignment savvy Sheet report Period 2, 2009 Structured Education broadcast Note: All legislative references in this assignment atomic number 18 to ITAA 1997 unless otherwise specified. PART A – Section (a) CGT event A1 entrusting occur on the inclination of large shares at the fourth dimension when the takeover contract is entered into (s104-10). The evaluate roof proceeds for apiece giant share make sense to $15.30, being $3.50 bills plus the market value of 2 tiddler shares expect to be approximately $5.00 each (s116-20(1)). The enceinte discover do by large shareholders will front on the make up base of their big shares (s104-10(4)). As gargantuan shares are post-CGT assets, the capital pass water cannot be disregarded chthonic s104-10(5). gargantuan’s non- occupant physician shareholders will only have dutiable capital gains on the disposal of their big shares if th e shares are Australian taxable property i.e. if: - Jumbo directly or indirectly holds Australian real property which accounts for at least 50% of its total assets; and - the non-resident holds at least 10% interest in Jumbo. As no single shareholder holds more than 9% of Jumbo, the non-residents’ Jumbo shareholdings are not Australian taxable property.

Therefore, they will not have any taxable capital gain on the disposal of their Jumbo shares. Jumbo’s resident shareholders can elect to use the scrip for scrip roll-over in subdiv 124-M if claw becomes gentle to at least 80% of the voting shares in Jumbo (s 124-780(2)). All other conditions for roll-o! ver under s124-780 are satisfied because: - Jumbo shareholders are exchanging their Jumbo shares for Minor shares (s124-780(1)); - shares in both Minor and Jumbo are ordinary shares (s124-780(1)); - the exchange occurs as great deal of a single takeover arrangement (s124-780(1)); - the takeover iron out will be put to all Jumbo shareholders (s124-780(2)); - Jumbo shares are post-CGT assets...If you want to get a full essay, tidy sum up it on our website: BestEssayCheap.com

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