Application Of Capital Gain Taxation Essay - 2448 Words

CASE STUDY -1 INTRODUCTION: For the application of Capital Gain Taxation (CGT) provisions under the Australian taxation system, the happening of a CGT event is must. The most common capital gain tax event is a sale of assets. These assets may be generally the either the real estate or the shares. However, there are other events also which are considered as CGT events. TO WHOM APPLICABLE: The provisions of the capital gains or losses are applicable on the following three kinds of legal personalities: †¢ Individuals. †¢ Companies. †¢ Trusts. The CGT is applicable only on the residents of Australia. It may be applicable on the foreign nationals only if they hold an Australian property. PROPERTIES THAT CAN BE TAXED: The provisions of the CGT are available only on the properties which are acquired by any individual company or trust after 20th September, 1987. The CGT provisions were introduced on the above mentioned date and it was applied prospectively. Thus, the properties acquired before 20th September 1987 are not meant to be taxable under CGT. The capital assets under CGT may be defined as either of the following: †¢ Property of any kind. †¢ Legal or equitable rights. Some exemptions are also been provided under the legislation. Most of the personal assets like residential homes, vehicles and other personal assets have been exempted from the provision. DETERMINATION OF THE HAPPENING OF THE CGT EVENTS: Capital gain taxes areShow MoreRelatedApplication Of Capital Gain Taxation ( Cgt ) Provisions Under The Australian Taxation System2447 Words   |  10 PagesINTRODUCTION: For the application of Capital Gain Taxation (CGT) provisions under the Australian taxation system, the happening of a CGT event is must. The most common capital gain tax event is a sale of assets. These assets may be generally the either the real estate or the shares. However, there are other events also which are considered as CGT events. 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