Each month, members of The Tax Institute can access a complimentary, recently-published technical paper that provides up-to-date information on a relevant issue for tax professionals.
The most recent paper is Restructuring rollover vs CGT concessions – And the winner is … by Jolyon Dare CTA.
Jolyon is a Tax Partner at HLB Mann Judd (NSW), where he specialises in helping corporate and SME clients and their advisors. He has significant experience in SME restructuring, practically assisting small businesses to manage their tax risk and opportunity and to realise their highest value at sale. Jolyon is also a regular presenter at The Tax Institute's Morning Tax Club and NSW Tax Forum.
In the paper, Jolyon explains how the ‘small business restructure rollover’ was originally announced in the May 2015 Federal Budget and ultimately enacted as Subdiv 328G of the ITAA97, having effect from 1 July 2016.
“Additionally, the new law was joined by guidance provided by the Commissioner in the form of LCG 2016/2 and LCG 2016/3, which deal with key concepts of (tax) consequences of the application of the ‘genuine restructure of an ongoing business’ respectively,” Jolyon writes.
“The small business CGT concessions in the form of Div 152 ITAA have been available in various guises and have been greatly modified over time (and had an immediate predecessor in the short-lived Div 123).
“While well-known and immensely useful, they are complex, easily misunderstood and sometimes counterintuitive.
“The purpose of the paper … is to explore the newcomer – the Small Business Restructure Rollover (or “SBRR”) – and, to borrow from Warren Beatty, to take a justified pause and run through some examples before announcing ‘the winner’.”
If you’re a member of The Tax Institute, you can download the paper here without charge. If you’re not an Institute member, a fee will apply.