Private ruling: Repayment of capital proceeds from sale of business
Ruling period: Year ended 30 June 2010.
Date scheme commenced: 1 July 2009.

Ruling: Q1: Will the capital proceeds received from the sale of your business be reduced by a repayment? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 116-50

Reasons for decision: Summary: The capital proceeds from a capital gains tax (CGT) event will be reduced by any amount that you repay or any compensation you pay that can reasonably be regarded as a repayment of part of the capital proceeds. In this case, you repaid an amount in relation to the proceeds received from the sale of your business. This repayment will reduce the capital proceeds received from the sale of your business in 2010. You will need to amend your income tax return to reduce your net capital gain as a result of the reduction in capital proceeds.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You sold your business in 2010. | A condition of the contract was you were required to work in another business. | In 2010 you requested the terms of the contract be reconsidered. | In 2010 you made a repayment in relation to the proceeds received from the sale of the business.