Taxation Determination

TD 2011/26W

Income tax: capital gains tax: if a share in a 'no goodwill' incorporated professional practice is disposed of for no consideration, will the Commissioner accept, for the purposes of calculating the market value of the share upon a possible application of subsection 116-30(1) of the Income Tax Assessment Act 1997 that the goodwill of the company can be taken to have no value?

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FOI status:

may be released

Notice of Withdrawal

Taxation Determination TD 2011/26 is withdrawn with effect from today.

1. TD 2011/26 concluded that yes, the Commissioner will accept in calculating the market value of the share in applying subsection 116 30(1) of the Income Tax Assessment Act 1997, that the goodwill of the company can be taken to have a value of nil.

2. Following consultations with the Professional Firms Working Group, TD 2011/26, TD 2011/D9 and TD 2011/D10 would be withdrawn and replaced by the administrative treatment outlined in Administrative treatment: acquisitions and disposals of interests in 'no goodwill' professional partnerships, trusts and incorporated practices published today.

Commissioner of Taxation
4 May 2016

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References

ATO references:
NO 1-80TSE13

Related Rulings/Determinations:

IT 2540
TR 2006/10

Legislative References:
ITAA 1936
6(1)
ITAA 1997
Pt 3-1
116-30(1)
116-30(2)(b)(i)
Subdiv 122-B
TAA 1953

Other References:
Administrative treatment: acquisitions and disposals of interests in 'no goodwill' professional partnerships, trusts and incorporated practices