Draft Taxation Determination
TD 1999/D69
Income tax: capital gains: can property or a right that does not have a 'market value' be a CGT asset?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 2000/33.
FOI status:
Not previously released in draft formPreamble
| Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. No. Know-how is not a CGT asset because it is not a form of property nor a legal or equitable right.
2. Know-how is knowledge or information rather than a CGT asset.
Note 1
3. A right in respect of know-how, such as a contractual right to require the disclosure or non-disclosure of know how, is a CGT asset under subsection 108-5(1) of the Income Tax Assessment Act 1997. Similarly, a licence to use know-how is a CGT asset.
Note 2
4. There may be implications under the revenue provisions of the income tax law for receipts for supplying or imparting knowledge or information: see section 6-5.
Your comments
5. We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.
| Comments by Date: | 10 September 1999 |
| Contact officer details have been removed following publication of the final ruling. | |
Commissioner of Taxation
11 August 1999
References
ATO references:
NO 99/10671-9
BO CGT asset summit 1999
Related Rulings/Determinations:
IT 2660
TR 93/12
TR 98/3
Subject References:
CGT asset
information
know how
knowledge
licence
rights
Legislative References:
ITAA 1997 6-5
ITAA 1997 108-5(1)