Private ruling: Capital gains tax - capital gains tax event A1
Published: May 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1:  | A1: 

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are an associate of the director of company A. You are going to start a new business undertaking similar work as company A. Your business will market the same industry including the same clients as company A. You are not disposing of any assets or interests in starting you new business. You will be employing a person who was employed by company A.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10.

Reasons for decision: Summary: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. The most common capital gains tax (CGT) event, CGT event A1, occurs when you dispose of a CGT asset, the time of the event is when you enter into the contract for the disposal or if there is no contract - when the change of ownership occurs. Many CGT assets are easily recognisable - for example land, shares in a company. Other CGT assets can include contractual rights, options, foreign currency and goodwill. In your case, there will be no disposal of any CGT assets. Therefore, a CGT event A1 will not occur.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Subject: Capital gains tax - capital gains tax event A1: Question: Will you trigger a capital gains tax event A1 by the actions you undertake?