ARTICLE · 23 AUGUST 2013

A stern warning to property "investors"

Moore Australia

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Your investment intent must be supported by actions both at the time of purchase and later while you hold the property.

AustraliaTax

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The recent decision in August v Commissioner of Taxation [2013] FCAFC 85 ('August') is a timely reminder to property investors to not only seek good advice at the time of acquiring a property, but also to be clear about their intentions and keep their house in order if they wish to stay on 'capital account' and within the CGT regime.

This was an interlocutory application to adduce further evidence prior to hearing of a further Appeal to the Full Federal Court following the decision of Nicholas J in August v Commissioner of Taxation [2012] FCA 682. In rejecting the application Siopis, Besanko and Mckerracher JJ have set out in detail the Nicholas J findings and firmly rejected the challenge to the conclusions "of the trial judge" on evidentiary issues.

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