ATO targets CGT discount TA 2014/1 - Damian
O'Connor
For many taxpayers the difference between a capital gain and
revenue income will amount to lots of tax dollars, whether they are
dealing in shares or disposing of other assets.
For property developers, the dividing line between revenue and
capital can be hazy at the best of times, and the Tax Commissioner
may take differing views depending on whether or not the project
results in a loss or a profit.
Taxpayer Alert
Profits from property developments that have been treated as
capital gains are high on the ATO target list right now, and the
Commissioner has now issued a Taxpayer Alert (TA 2014/1) as a
warning of his intention to audit developers to see if they are
accounting for their transactions in accordance with the
Commissioner's party line, with penalties of up to 75% in
deliberate cases.
