On the 28th April 2009, the Government released, in exposure draft form, a package of proposed legislative amendments dealing with 19 consolidation issues that had been initially foreshadowed in announcements back to December 2005. A further 6 issues remain under review.
These measures are particularly important as they impact on most "formation' calculations for larger corporate groups and tax outcomes for subsequent corporate acquisitions and divestments. Many of them are stated as having retrospective application back to 1 July 2002!
The measure dealing with pre-CGT interests will also be directly relevant to many non-listed corporate groups.
In many cases these amendments, when enacted, could result in additional capital losses under CGT event L6 becoming available. Unfortunately, in other cases gains may arise.
This event briefed delegates on the scope of these measures and their practical implications.