Australia mulls CGT tweak for deferred deals

News

The Australian Tax Office has issued a draft ruling on the taxation of deferred purchase agreements (DPAs), which, although discounting DPAs from being classed as income tax, has deemed that a capital gains tax (CGT) event would occur upon delivery to the investor of the delivery assets. The ruling means that investors may be liable to pay tax on unrealised returns, and is likely to affect structured products that incorporate DPAs.

The draft, which determined that DPAs are not a 26BB instrument a

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