Deductible liabilities in mergers and acquisitions – practical issue from ATO guidance

Catherine Dean, Scott Farrell & Jenny Wong discuss Draft Taxation Determination 2019/D11.

If you are purchasing a business or assets and there are deductible liabilities being assumed by the purchaser, you need to consider the Australian Taxation Office’s (ATO) new draft ruling, TD 2019/D11 released on 30 October 2019.The ATO’s view in TD 2019/D11 confirms that any deductible liabilities that are assumed by the purchaser of an asset, are not included in the CGT cost base of the asset. This latest draft ruling is consistent with the acquisition of subsidiary scenarios under ta...

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Authors: Catherine Dean, Scott Farrell,

Published Date: 03 November 2019