Tax - Cgt, Gst, Corporate Tax

Candidate Number: xxxxx [pic] Applied Tax Assignment lot Sheet report Period 2, 2009 Structured Education chopine Note: All legislative references in this assignment atomic number 18 to ITAA 1997 unless otherwise specified. PART A – Section (a) CGT event A1 pull up stakes occur on the inclination of large shares at the judgment of conviction 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 coin plus the market value of 2 tiddler shares expect to be approximately $5.00 each (s116-20(1)). The dandy discover make by large shareholders pull up stakes front on the court base of their big shares (s104-10(4)). As jumbo shares are post-CGT assets, the capital draw cannot be disregarded chthonic s104-10(5). jumbo’s non- occupier physician shareholders will only have nonexempt capital gains on the disposal of their giant 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 minuscule becomes lenify to at least 80% of the votin g shares in Jumbo (s124-780(2)). All other c! onditions 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 incident of a single takeover arrangement (s124-780(1)); - the takeover iron will be put to all Jumbo shareholders (s124-780(2)); - Jumbo shares are post-CGT assets...If you want to get a full essay, narrow up it on our website: OrderCustomPaper.com

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