Tax - Cgt, Gst, Corporate Tax

Candidate Number: xxxxx [pic] apply Tax Assignment Cover Sheet overlay Period 2, 2009 Structured statement Program Note: All legislative references in this assignment ar to ITAA 1997 unless otherwise specified. PART A – Section (a) CGT event A1 exit occur on the controversy of large shares at the time when the coup detat contract is entered into (s104-10). The measure roof proceeds for severally(prenominal) giant share soak up sense to $15.30, being $3.50 hard currency plus the market prize of 2 tiddler shares pass judgment to be approximately $5.00 each (s116-20(1)). The pileus discover make by large shareholders for go about front on the appeal base of their big shares (s104-10(4)). As jumbo shares are post-CGT assets, the capital net can non be disregarded chthonic s104-10(5). elephantine’s non- occupant physician shareholders provide only have dutiable capital gains on the temperament of their jumbo shares if the shares are Australian taxable retention i.e. if: - giant directly or indirectly holds Australian real property which accounts for at to the lowest degree 50% of its total assets; and - the non-resident holds at least 10% interest in jumbo. As no whiz shareholder holds more than 9% of Jumbo, the non-residents’ Jumbo shareholdings are not Australian taxable property.

Therefore, they impart not have either taxable capital gain on the disposal of their Jumbo shares. Jumbo’s resident shareholders can elect to subroutine the scrip for scrip roll-over in subdiv 124-M if tike becomes authorise to at least 80% of the voting shares in Jumbo (s124-780(2)). All other conditions for roll-over below s124-780 are satisfied because: - Jumbo shareholders are exchanging their Jumbo shares for humble shares (s124-780(1)); - shares in both Minor and Jumbo are usual shares (s124-780(1)); - the exchange occurs as fate of a single takeover arrangement (s124-780(1)); - the takeover press out will be entrust to all Jumbo shareholders (s124-780(2)); - Jumbo shares are post-CGT assets...If you want to get a full essay, golf hole up it on our website: Orderessay

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