ensuring that a trust that makes such an election (an excluded trust) forgoes the CGT discount on capital gains arising from assets other than goodwill and assets inherently connected with the business carried on by ‘intangible the trustee’; applying a business income election to all loans the trust owes to a private company, whenever created, and to all CGT assets (other than goodwill or relevant intangible assets) whenever acquired; not excusing entities that make a business income election from Division 7A obligations for the period prior to the income year for which the election is made; and amending interposed entity rules to preserve the integrity of the provisions, without imposing undue compliance costs on trusts that wish to benefit from the proposed limited business income exception. The Board further recommends that the Government consider the impact of applying a business income election to existing arrangements for small businesses in order to determine whether special transitional relief for that sector is warranted.
ensuring that a trust that makes such an election (an excluded trust) forgoes the CGT discount on capital gains arising from assets other than goodwill and ‘intangible assets inherently connected with the business carried on by the trustee’; applying a business income election to all loans the trust owes to a private company, whenever created, and to all CGT assets (other than goodwill or relevant intangible assets) whenever acquired; not excusing entities that make a business income election from Division 7A obligations for the period prior to the income year for which the election is made; and amending interposed entity rules to preserve the integrity of the provisions, without imposing undue compliance costs on trusts that wish to benefit from the proposed limited business income exception. The Board further recommends that the Government consider the impact of applying a business income election to existing arrangements for small businesses in order to determine whether special transitional relief for that sector is warranted.