| Capital Gains Tax (CGT)
is a tax paid on any capital gain that is made in a given
financial year. This can include the sale of property, shares or
managed fund investments. It is not a separate tax, but rather
forms part of your income tax liability.
The tax office often conducts CGT Audits to ensure that
taxpayers are compliant with their legal obligations.
We have included some brief information below about CGT and
CGT Audits.
For more detailed or specific information regarding CGT
Audits complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) to arrange an
appointment.
Individuals
Taxpayers that are identified as high risk because they have not
disclosed a capital gain, significantly under-reported a gain or
failed to lodge a return will be audited.
The ATO will compare tax returns with information from state
revenue offices and other government agencies, the Australian
stock exchange and share registries as well as information
reported by managed funds.
The ATO will examine approximately 6000 at-risk cases this year.
Micro-businesses
ATO compares information from external sources with information
provided in returns to ensure that capital gains and losses are
being reported and claimed appropriately, particularly for
transactions that involve:
- Property;
- Shares;
- The chartered boat industry; and
- The fishing industry.
The ATO monitor asset disposals and transfers particularly to
superannuation funds. The aim is to identify cases that involve
aggressive tax planning, inappropriate valuations or complex
structures designed to avoid or minimise capital gains tax.
Small-medium Size Enterprises
The ATO will conduct reviews and, where necessary, audits to
identify small to medium size enterprises that are deliberately
manipulating their business affairs to minimise a capital gain
or obtain a capital gain tax concession.
This year the ATO reviews are focusing on businesses that are:
- Setting up arrangements to reduce their capital gain when the
business is sold;
- Claiming small business concessions when they do not satisfy the
threshold requirement;
- Failing to report capital gains tax events;
- Using significant capital loss to offset capital gains; and/or
- Resetting the cost base of assets under consolidation,
particularly where there have been significant capital gains or
losses.
Large Businesses
The ATO is working to ensure that economic gains are reflected
in taxable gains as appropriate.
The ATO examines capital gains
tax issues arising from mergers, acquisitions, divestments and
capital rearrangements. When non-resident businesses dispose of
their Australian assets and make a capital gain, the ATO takes
action, where possible, to collect the appropriate amount of tax
on that gain before sale proceeds are sent offshore.
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Our dedicated team can assist you with all your auditing
needs.
Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223
9166 to arrange an
appointment.
You may also wish to visit our dedicated GST website for more
information
www.allcapitalgainstaxsolutions.com.au
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