Property development and tax

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO are many and varied, but can include topics such as whether an agreement to develop and sell land is a “mere realisation” or a disposal either in

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Profit-making “intention” of asset ownership can influence tax outcome

A profit that arises from the carrying out of a profit-making undertaking or plan (that is, one with a profit-making intention) will be assessable as statutory income under s15-15 of the ITAA97 where the proceeds of the profit-making undertaking or plan are not otherwise assessable as ordinary income under s6-5 ITAA97. Profit-making “intention” of asset

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