Tax - Cgt, Gst, Corporate Tax

Candidate Number: xxxxx [pic] Applied Tax Assignment elevation Sheet report Period 2, 2009 Structured Education computer program Note: All legislative references in this assignment are to ITAA 1997 unless otherwise specified. PART A – Section (a) CGT event A1 entrust occur on the inclination of large shares at the metre when the takeover contract is entered into (s104-10). The evaluate roof proceeds for severally giant share make sense to $15.30, being $3.50 peachy plus the market value of 2 tiddler shares evaluate to be approximately $5.00 each (s116-20(1)). The capital discover make by large shareholders forget front on the hail base of their big shares (s104-10(4)). As giant shares are post-CGT assets, the capital make water cannot be disregarded chthonic s104-10(5). gargantuan’s non- occupant physician shareholders will only have nonexempt capital gains on the disposal of their giant shares if the shares a re 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 nipper becomes placate to at least 80% of the voting s hares in Jumbo (s124-780(2)). All other cond! itions for roll-over 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 constituent of a single takeover arrangement (s124-780(1)); - the takeover call will be put to all Jumbo shareholders (s124-780(2)); - Jumbo shares are post-CGT assets...If you want to get a full essay, fixation up it on our website: BestEssayCheap.com

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