Seller of private company shares misses out on small business CGT concessions

The Administrative Appeals Tribunal has decided that a taxpayer failed the maximum net asset value test and could not use the small business CGT concessions following the disposal of a 1/3rd interest in a private company.  The taxpayer argued that the shares should be valued at an amount less than what he was paid for the shares.  This was because there were restrictive covenants provided in the share sale agreement. The taxpayer also argued that the market value of the shares he sold should be lower than the actual funds received due to him selling a minority interest and also due to the lack of marketability of the shares in a private company.  

Website Comments

  1. Raimond Bazbauers

    Very well presented in a way that made it easily understood even to a person with minimal tax knowledge.

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